LDK Solar Co's Anhui LDK New Energy Co. has agreed to sell off its stake in LDK Solar High Tech (Hefei) Co to a subsidiary of the municipal government of Hefei, in Anhui Province, China.
LDK Solar had agreed to sell the asset for the price of 120 million yuan or US$19.4 million. With the sale, the firm is expecting a loss of US$80 million to US$90 million on the sale, according to the Xinyu, China based firm. Solar High Tech manufactures and builds solar cells and panels.
According to President and CEO of Tong Xingxue, "We appreciate the assistance and collaboration from Hefei Municipal Government."
LDK is the second largest maker of sunlight power converters in the world. The firm is selling off the unit as it finds ways to pay off more than US$3.1 billion in debt as it failed to meet its bond payment responsibilities yesterday and is set to pay a US$240 million loan falling due in June 2013.
The company also announced it had reached an aggreement to postpone the payment to bond holders worth US$16.6 million of its US$23.8 million due yesterday. The company is expected to announce a fourth quarter loss this week according to Bloomberg compiled data.
Join the Conversation