China-based LDK Solar Co. Ltd., a vertically integrated manufacturer of photovoltaic products, says it was unable to make full payments to the holders of its 4.75% convertible senior notes in an aggregate principal amount of $23,793,000 (plus interest) due April 15. The company cited a ‘temporary cashflow shortage.’
LDK Solar has privately and individually negotiated with two holders of such convertible notes in the aggregate principal amount of $16,553,000 and reached a settlement with them. The settlement calls for a partial payment in cash and, effectively, a loan facility to postpone the repayment of the remaining indebtedness.
LDK Solar adds that it had also informed The Bank of New York Mellon, as trustee for the holders of the convertible notes, of such nonpayment.
