Cash-strapped Chinese manufacturer LDK Solar has won a second reprieve from noteholders on repaying interest on its bonds first due two months ago.
A “forebearance arrangement” agreed yesterday with a majority of LDK’s bondholders means the company will have a second month-long extension on interest repayments, having reached a virtually identical agreement last month.
This was due to expire yesterday – 27 October – but in a statement today LDK said the interest repayment, originally due on 28 August, was still unpaid and that it had agreed another deadline with bondholders of 26 November.
LDK said it was still its “intention to find a consensual solution to its obligations under the notes as soon as possible”. “LDK Solar remains hopeful that it will be able to achieve that goal,” a statement said.
The Chinese wafer manufacturer is struggling on multiple fronts, having seen sales plummet and debts soar.
The latest deal with bondholders will be seen as a further attempt to buy time and head off legal action that could result in bankruptcy proceedings in US courts.
The company has estimated debts of US$2.75 billion.