LDK Solar signs 4th forbearance agreement

Dec 10, 2013 - LDK Solar Co Ltd (NYSE:LDK) on Tuesday unveiled a fourth forbearance deal until January 9, 2014 with its bondholders in relation to the interest payment that the Chinese photovoltaics (PV) firm failed to make in August.

The agreement was signed with holders of a majority of the aggregate principal amount of LDK’s US dollar-settled senior notes that are due February 2014. The CNY 1.2 billion (USD 198m/EUR 144m) worth of notes with a 10% annual coupon were sold in February 2011. The coupon payment that was due August 28 remains unpaid.

The new forbearance deal follows two one-month extensions agreed in September and October and a two-week forbearance agreement from November. LDK Solar is still looking for a “consensual solution to its obligations under the notes".

The company earlier hired Jefferies LLC to act as its financial advisor in relation to its offshore debt, including the 2014 notes.

In the middle of November LDK Solar secured CNY 1.56 billion in debt from 11 commercial lenders, seeking to finance its onshore operations in Jiangxi province, southeastern China.

(CNY 10 = USD 1.647/EUR 1.198)

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