LDK Solar Co. (LDK:US)’s Anhui LDK New Energy Co. agreed to sell its stake in LDK Solar High-Tech (Hefei) Co. to an affiliate of the municipal government of Hefei, in China’s Anhui province.
LDK Solar agreed to sell the unit for 120 million yuan ($19.4 million) and expects to realize a net loss of $80 million to $90 million on the sale, the Xinyu, China-based company said in a statement today. Solar High-Tech produces solar cells and panels.
“We appreciate the assistance and collaboration from Hefei Municipal Government,” Tong Xingxue, President and Chief Executive Officer of LDK, said in the statement.
LDK, the world’s second-biggest maker of wafers that convert sunlight into power, is selling the unit as it struggles to pay down more than $3.1 billion in debt. It failed to make a bond payment yesterday and has a $240 million loan that will be due in June.
LDK said Jan. 2 that it had signed an agreement with Shanghai-based Shanghai Qianjiang Group to purchase all of LDK’s shares of LDK Anhui. Qianjiang failed to get government approval by the agreement’s expiration date of March 30, LDK said in today’s statement.
The company also said today that it reached an agreement to delay repayment to two holders controlling $16.6 million of its $23.8 million in bonds due yesterday. The company, which had net debt of $3.1 billion at the end of September, is expected to report a loss when it reports fourth-quarter results this week, according to data compiled by Bloomberg.
To contact the reporter on this story: Ehren Goossens in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Reed Landberg at email@example.com