Chinas 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 Solars second quarter trading update for 2013 revealed the extent of the companys 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.