LDK Solar Co. Ltd. has signed a purchase agreement with Shanghai Qianjiang Group under which Qianjiang Group has agreed to purchase all shares of LDK Anhui for approximately RMB 25 million.
According to the terms of the agreement, Qianjiang Group will release the guarantee LDK Solar provided to LDK Anhui and its subsidiaries within 12 months, as well as compensate LDK Solar for any loss associated with such guarantee, prior to its release.
As of Sept. 30, 2012, LDK Anhui carried consolidated negative net assets of approximately $54 million. Total bank borrowings of LDK Anhui and its subsidiaries totaled approximately $485 million, with a consolidated asset-to-liability ratio of 107%.Â
LDK Solar anticipates that the divestiture of LDK Anhui will increase its pro forma consolidated net assets by $58 million, as well as decrease its pro forma consolidated asset-to-liability ratio by approximately 1.8%.
