Solar Defaults Shock Holders as $8.4 Billion Due: China Credit
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LDK Solar Co.’s delay in paying debt and Suntech Power Holdings Co.’s attempts to renegotiate obligations are prompting investors to gird for losses as $8.4 billion in renewable energy bonds come due by the end of 2014.
The 2014 securities of LDK slid to a record low of 25.6 yuan per 100 yuan face value last week after the manufacturer said a payment due Aug. 28 on the notes would be delayed. That compares with the 30 euros per 99.861 euro issue price on Bonn-based Solarworld AG. Suntech, once the world’s biggest panel maker, said former chairwoman Susan Wang and two other directors quit amid negotiations with holders of its defaulted debt.