LDK negotiates 15-day forbearance on notes payment

17. January 2014 | Industry & Suppliers, Investor news, Markets & Trends | By:  Max Hall

Embattled Chinese manufacturer LDK has until Thursday to negotiate a deal with holders of its U.S. dollar denominated notes. An interest payment on the notes has been due since August 28.

LDK Solar.

LDK Solar has until Thursday to reach an agreement with noteholders waiting on interest payments due since August 28.

Debt-crippled Chinese solar wafer manufacturer LDK Solar is midway through the latest forbearance agreement related to overdue interest payments on 10% U.S.-dollar denominated notes.

LDK last Thursday negotiated another 15-day stay of execution over the interest payments due to noteholders, which have been liable for payment since August 28.

The latest forbearance agreement will expire on Thursday and, in a company press release announcing the agrrement, LDK said: "It is LDK's intention to find a consensual solution to its obligations under the notes as soon as possible and LDK Solar remains hopeful that it will be able to achieve that goal."

The company has hired Jefferies LLC to advise over the notes and other overseas debt obligations.

The scale of LDK's total debt pile is such that the manufacturer is a hot tip among solar watchers to fall victim to the industry consolidation being encouraged by the Chinese government.

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