LDK Solar in talks with creditors to seek additional flexibility

By Jennifer Chiou

New York, Dec. 12 - LDK Solar Co., Ltd. announced that it is continuing to work to address liquidity and working capital concerns, and it has engaged Citigroup to assist in the process of discussions with certain creditors.

The company is looking to obtain additional flexibility for its existing offshore debt.

In September, chief executive officer Xiaofeng Peng said during the company's second-quarter 2012 earnings call that LDK Solar was challenged by its current cash and liquidity position and was working with lenders to improve its debt maturity profile.

As announced, LDK entered into several sales agreements to sell some of its real estate properties and land-use rights to local government authorities during the second quarter as part of its liquidity plan.

The company reported $2.4 billion of short-term debt and current installments of long-term borrowings in that quarter.

LDK Solar is a Xinyu City, China-based producer of solar wafers and photovoltaic products.

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