LDK Solar subsidiary sale still awaiting approval

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China-based LDK Solar Ltd announced yesterday that it is still working with the relevant government agencies with regard to its sale of LDK Anhui subsidiary, located in Hefei City, to Shanghai Qianjiang Group.

Under the terms of the sale agreement, announced on January 2, the Shanghai Qianjiang Group arranged to buy the shares of LDK Anhui for around RMB 25 million (around €3.1 million, US$4 million). At the time, it was said that LDK Anhui had negative net assets of $54 million and bank borrowings of $485 million.

It was also agreed that the guarantee LDK Solar provided to LDK Anhui and its subsidiaries would be released within 12 months, and that Shanghai Qianjiang Group would compensate LDK Solar for any loss associated with the guarantee.

Originally, the closing date for the sale was set for March 31. However, LDK Solar is still awaiting governmental approval. "We will provide further updates when a final approval decision is made," stated LDK Solar president and CEO, Xingxue Tong.