The continued dire financial position of LDK Solar has been highlighted again with a forbearance arrangement being agreed with bondholders over failure to meet interest payments on a previously partially defaulted bond.
LDK Solar is believed to be seeking a rescheduling of the interest payments and bond with bondholders. The company was only able to repay 10% of a US$23.8 million convertible bond that matured April 15, 2013.
The forbearance arrangement is set through to 27 October 2013, delaying any potential legal action that could result in forced bankruptcy proceedings in US courts.
The company noted that obligated interest payments remained unpaid.
LDK Solar has debts of over US$2.75 billion.