LDK Solar Co., a Chinese photovoltaic manufacturer with more than $3.1 billion in debt, agreed to sell about a 12 percent stake to Fulai Investments Ltd. for $31 million.
LDK plans to issue 17 million new shares at $1.83 each and offered two board seats to Fulai, the Xinyu, China-based solar company said in a regulatory filing today. The new shares will boost LDK’s total outstanding to about 144 million, according to data compiled by Bloomberg.
LDK, the biggest maker of wafers for solar cells after GCL-Poly Energy Holdings Ltd., last month hired Citigroup Inc. to help renegotiate its liabilities. Fulai is incorporated in the British Virgin Islands, according to the filing.
LDK’s American depositary receipts, each worth one ordinary share, rose 7.7 percent to $1.97 at the close in New York. They have declined 59 percent in the past year.