The World's #1 Renewable Energy Network for News, Information, and Companies.

LDK Makes Proposal to Refinance $280 Million in Notes Due in 2014

LDK Makes Proposal to Refinance $280 Million in Notes Due in 2014

LDK Solar Co., the second-biggest maker of solar wafers, proposed two ways to restructure obligations on about 1.7 billion yuan ($280 million) of 10 percent notes due in 2014.

The Chinese manufacturer that hasn’t made full payments on some of its debt offered to either pay off holders of the 10 percent notes 20 cents for each $1 of principle or exchange the notes for stock, according to a statement released on PR Newswire today.

The company has discussed the plan with holders of 40 percent of the notes, though it hasn’t yet reached any agreement and talks are continuing. It’s the latest proposal to sort out liabilities that totaled $5.2 billion in 2012.

Under the stock exchange proposal, LDK would pay 8.7 percent of the face value of the notes plus accrued interest through June 3 in ordinary shares of the company, valuing the stock $1.586 each. The remainder of the debt would be turned into convertible bonds with an exercise price of $20, LDK said.

The company that suffered from a plunge in solar panel prices caused by a glut in manufacturing capacity also released forecasts suggesting it may return to profit before taxes as early as next year. Those forecasts, it said, weren’t prepared using generally accepted accounting principles.

It projected earnings before interest, taxes, depreciation and amortization at $107 million next year and rising to $317 million in 2018. It had a loss of $340 million by that measure last year, according to data compiled by Bloomberg.

The projections call for shipments and revenue to rise both in 2014 and 2015 and assume LDK receives funding under a 2 billion yuan working capital finance plan by the end of this year. It also assumes LDK finishes upgrading a polysilicon plant by March 2014.

The company has also been in discussions with some holders of its preferred obligations to restructure those debts. Affiliates of preferred-obligation holders have agreed to provide a part of the 2 billion yuan working capital and capital expenditure facility, it said.

Copyright 2013 Bloomberg

Lead image: Debt eraser via Shutterstock


Solar water heating

California Regulators Propose Expansion of Eligibility Requirements for Solar Water Heating Program

Jennifer Delony The California Public Utilities Commission has proposed expanding the eligibility requirements for customers seeking to participate in the California Solar Initiative thermal low-income program for solar water heating syst...

Florida Supreme Court Takes Up Solar Question

Wayne Barber Because Florida remains one of only four states where current laws expressly deny citizens and businesses the freedom to buy solar power electricity directly from someone other than an electric utility, the Solar Choice ba...
solar net metering

Lithuanian Net Metering Hits Snag from Outset

Linas Jegelevicius

The much anticipated net metering in Lithuania has hit a major snag from the very start – the introduced network operator service fee of 0.031 euros ($0.035) per 1 kWh is too high and can snuff out any solar gleam.

Solar energy

Colorado PUC Orders No Changes to Solar Net Metering

Vince Font In what is being lauded as a “fair outcome” for consumers, utilities and the solar industry alike, the Colorado Public Utilities Commission (PUC) last week voted that no changes will be made to the state’s net metering pol...


Volume 18, Issue 4


To register for our free
e-Newsletters, subscribe today:



Successfully Integrating Solar: A Proactive Approach

•      What does the increasing solar penetrati...

Solar Frontier Offsite Office at Solar Power International (2 mins....

Solar Frontier will be hosting an offsite meeting room offering our gues...

PV-Diesel Hybrid Systems to Reduce Diesel Demand

Substantial fuel cost saving potential has made PV technology the centre...


Vacancy? No Problem!

Have you ever tried to sell an efficiency product or service to a prospe...

Going The Extra Mile

Selling efficiency takes perseverance, creativity, and a willingness to ...

Get In The Groove

When we talk about strategies for boosting productivity, we often overlo...


Tweet the Editors! @jennrunyon


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now