LDK to Have Some Debts Paid by Chinese City Where It’s Based
LDK Solar Co. (LDK), the world’s second- biggest maker of wafers that convert sunlight to power, will have part of its debts paid by the government of the Chinese city in which it is based.
The city of Xinyu in eastern China’s Jiangxi province has decided to include the repayment of LDK Solar’s loans from Huarong International Trust and Investment Corp. in the municipal government’s annual fiscal budget, according to a statement on the website of the National People’s Congress, the nation’s top legislative body. Xinyu’s local legislature has approved the plan, according to the statement dated July 13, which didn’t say how much the city would pay.
LDK said in a May filing that it might be unable to remain a “going concern” if it can’t improve access to funds. The company announced a first-quarter net loss of $185.2 million on June 26.
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