LDK Solar arranges second 30-day payment extension

The debt-saddled manufacturer has negotiated another 30-day period in which it will pay no interest on its loans as the company explores financing options.

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China’s LDK Solar has secured a 30-day forbearance arrangement on its debts as the company discusses with its financial advisors strategies to help them meet their immediate financial obligations.

An initial 30-day stay of execution was originally negotiated in September, winning the company repreive from having to pay interest on loans due on August 28. That grace period expired on October 27, but LDK Solar has negotiated another extension that will now expire on November 26.

Until that time, the Xinyu, China-based company will attempt to raise the required capital to pay the $13 million in interest it owes on the Senior Notes for 2014.

LDK Solar has said that it remains hopeful a consensual agreement can be reached, with the company revealing that Sidley Austin LLP will act as legal counsel, while Jefferies Group LLC was last month appointed to advise on its offshore debt obligations.

LDK Solar’s second quarter trading update for 2013 revealed the extent of the company’s debt problems, with $4.4 billion current or short-term liabilities owed, $13 million of which has been accrued in interest payments on the note, due to mature in early 2014.

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Ian Clover

Ian joined the pv magazine team in 2013 and specializes in power electronics (inverters) and battery storage. Ian also reported on the UK solar market, having worked as a print and web journalist in Britain for various multimedia companies, covering topics ranging from renewable energy and sustainability to real estate, sport and film.

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