Bloomberg 30 May 2013
LDK Solar Co. (LDK), the second-most indebted solar manufacturer, won’t be able to pull off a deal needed to cover a loan due to Chinese lenders next week.
The company “is not currently intending” to spin off its polysilicon unit by June 3, as required under the terms of a $240 million investment it received in 2011, according to a filing May 20 with the Securities & Exchange Commission.
Failure to complete an initial public offering of its LDK Silicon unit means holders of convertible preferred shares may demand repayment of the investment plus 23 percent, about $295 million. It’s unlikely to make that payment, the second time this quarter it missed a debt obligation, according to Angelo Zino, an analyst at Standard & Poor’s Financial Services LLC in New York.
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LDK Solar May Miss Payment After Scrapping Silicon IPO
