LDK Solar Co., Ltd (NYSE:LDK) Can’t Make It’s Payments?
Last week, China’s 2nd largest solar wafer maker, LDK Solar Co., Ltd (NYSE:LDK) announced that it has got a reprieve of 30 days from paying interest on its debt payments. These were due for payment last month. This forbearance arrangement covered payments that were due on 28 August on LDK Solar Co., Ltd (NYSE:LDK)’s 2014 securities and have a 27 October expiration.
The company said that this was the first step in gaining a consensual-solution to the company’s obligations under the notes. The company is based in China and on 4 September it had announced that it has delayed $13M in interest payments which were due last month. The company has hired the services of Jefferies Group LLC for advice on the company’s offshore debt-obligations.
In Monday’s trading session, LDK Solar Co., Ltd (NYSE:LDK) rose by 29.53%. The company’s shares opened at a price of $1.54, climbed to an intraday high of $1.93 which was also the closing price for the day. Approximately 14.09 million shares were traded on Monday while an average volume of 1.68 million shares were traded over 30 days. The 52-week low of the shares is $0.71 while the 52-week high is $2.32. The company has a market capitalization of $306.53 million.
LDK Solar Co., Ltd (NYSE:LDK) is a vertically-integrated manufacturer of PV products. It manufactures products such as Polysilicon, Solar Cells, Solar Wafers, Solar Modules as well as Solar Farm Projects. The company operates in 2 business segments: 1) Polysilicon and 2) Other PV products.
The Polysilicon segment engages in producing and selling polysilicon. The Other Photovoltaic products segment engages in manufacturing and selling monocrystalline & multicrystalline solar-wafers, PV-modules and processing-services. It also manufactures and sells PV cells and develops power-plant projects. It produces and sells multicrystalline and mono-crystalline sola- wafers globally to various manufacturers of solar-cells and solar-modules.