The revelation debt-saddled Chinese wafer manufacturer LDK Solar has negotiated a 30-day stay of execution over interest payments due on US bond notes could signal the endgame is approaching for the solar giant.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) yesterday by LDK Solar chief financial officer Jack Lai, the company announced a 30-day reprieve relating to overdue interest payments on a note which is due to mature next year.
Interest payments due from the 2014 note have been unpaid since August 28 and LDK now has until October 27 to negotiate a solution but mentioned in the submission that it understands legal firm Ropes & Gray LLC is acting on behalf of a group of noteholders led by Daniel Anderson and Paul Boltz.
The tip of the iceberg
Xinyu-based LDK, which in its second quarter 2013 trading update released a couple of days before the interest payments became due revealed a US$4.79 billion debt pile of which more than $4.4 billion was current or short-term liabilities, has already appointed Jefferies LLC as financial advisor in relation to notes and other offshore obligations.
In a rather plaintive note to the SEC, the LDK statement reads: "We are hopeful that the forbearance arrangement is the first step in achieving a consensual solution to our obligations under the notes."
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.