LDK Solar, one of the world's largest producers of solar wafers, has finalised a deal to sell three solar plants to Henan Xindaxin Materials for RMB140 million (US$22.4 million).
The agreement which was announced yesterday is part of LDK’s effort to claw its way out of a US$3.6 billion debt.
PV-Tech understands that LDK will lease back the plants at its manufacturing sites from Xindaxin for RMB9.9 million a year for six years, starting on November the first. The Kaifeng, China-based chemicals company also retains the right to repurchase them at a later date.
According to data compiled by Bloomberg, LDK was US$3.6 billion in debt at the end of the second quarter and analysts expect it to lose US$440 million this year.
Chief Executive Officer Peng Xiaofeng said the company is seeking to improve its cash and liquidity position as the solar industry contends with falling panel prices.
At one point, LDK’s American Depositary Receipts (ADR), each worth one ordinary share, fell 3.6% to 86 cents. The ADRs rebounded by 21% after the company agreed to issue new shares and sell a 19.9% stake to Heng Rui Xin Energy Co.