China's LDK Solar misses $23.8M bond payment

LDK Solar defaults on $23.8 million bond payment, adding to Chinese solar industry woes

Associated Press

NEW YORK (AP) -- LDK Solar Co. said Tuesday that it failed to make a $23.8 million bond payment this week because of a "temporary cash-flow shortage" but negotiated to delay some of the obligation.

Payment on the 4.75 percent convertible notes was due Monday. LDK said it agreed with two bondholders to delay $16.6 million in payments. The company said it was "ready and willing to discuss and reach a settlement for the remaining convertible notes."

In afternoon trading LDK shares fell 5 cents, or 4.5 percent, to $1.07. They have fallen 25 percent this year. The stock traded at more than $70 in late 2007.

LDK's announcement came a month after another Chinese solar equipment maker, Suntech Power Holdings Co., defaulted on $541 million in bond payments.

The solar-power industry has been hurt by a glut of production that has led to a sharp drop in prices for panels. And fewer subsidies in Europe has slowed growth in demand.

LDK has headquarters and main manufacturing centers in China's Jiangxi province.

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