Sept. 4 (Bloomberg) -- LDK Solar Co., the second biggest maker of solar wafers, said it is in talks with noteholders of its 2014 securities to delay interest payments that were due on Aug. 28.
The semiannual payment due was about 80 million yuan ($13 million), Peng Shaomin, director of media at LDK, said today by phone. “We have a one-month forbearance agreement,” he said.
The yuan-denominated 10-percent notes tumbled to a record low of 25.6 yuan per 100 yuan face value last week after the manufacturer said a payment on the notes would be delayed. The missed payment along with Suntech Power Holdings Co.’s attempts to renegotiate its obligations have unsettled investors as $8.4 billion in renewable energy bonds come due by the end of 2014.
LDK failed to fully repay $23.8 million of convertible bonds that matured April 15 and is restructuring another $240 million of securities that were due in June. The company ended the second quarter with $2.8 billion in debt and $85.1 million in cash, the least since 2009.
China’s 10 biggest photovoltaic companies had debt of more than 100 billion yuan, the Ministry of Industry and Information Technology said on Aug. 15.
Shares of LDK fell 1.3 percent to close at $1.48 in New York trading yesterday.
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