LDK holds off creditors for another 21 days

Debt-saddled Chinese solar manufacturer LDK Solar has signed another extension to the forbearance agreement with holders of its 10% senior notes.

Holders of the notes, who are still awaiting an interest payment in relation to them due since August 28, agreed on Thursday to hold off on any further action for another 21 days, with the latest forbearance deadline due to expire on February 13.

The LDK statement announcing the latest development, published on the company’s website, follows the same format as news of the previous 15-day extension, with the company again announcing: "It is LDK Solar’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 notes in question are due to mature this year.