Loan woe at LDK-owned Sunways
German PV cell and inverter maker Sunways says an outstanding credit facility has been recalled by lenders concerned about the company and the broader industry, representing another blow for parent company LDK Solar.
While the size of the credit facility is relatively modest – €6.6m ($8.6m) – and was due to expire in September, Sunways says it is stuck negotiating a repayment plan in order “to secure the company’s existence” after the banks exercised their “extraordinary termination rights”.
Sunways also postponed the publication of both its 2012 financial statements due on 30 April and, pre-emptively, its half-year 2013 report due later this year.
The move comes after a period of heavy churn at the top of Sunways, with LDK rotating in a number of its own executives into top positions, and many former Sunways executives either leaving the company or being demoted.
Sunways boasts one of the largest cell capacities in Germany, but China’s LDK appeared most interested in its inverter business when it acquired the company early last year – and hinted towards major expansion plans.
But Sunways – much like its parent company – has fallen on increasingly hard times, and in December announced it would lay off nearly half its German workforce.
Last week LDK followed Suntech to become the second major Chinese company to default on bond repayments.