LDK Solar says lenders give shareholder more time
NEW YORK (AP) — Chinese solar equipment maker LDK Solar says lenders to its controlling shareholder won't sell loan-related collateral for a year.
The company said Tuesday that controlling shareholder LDK New Energy Holding Ltd. defaulted on a credit agreement from September 2011. That gave lenders the right to sell the collateral, which includes shares of LDK Solar.
Under the credit agreement, LDK New Energy pledged ordinary shares and American depositary shares representing about 52.9 percent of LDK Solar Co.'s outstanding share capital.
Last month LDK Solar reported that its second-quarter loss widened, hurt by a drop in the market price for polysilicon, wafers, cells and modules.
LDK shares fell 2 cents to $1.04 in afternoon trading.