Update: LDK Solar saved again by municipal funding

The financial health of China’s LDK Solar once again grabbed the spotlight after it emerged that the municipal government in Xinyu, where the debt-plagued PV manufacturer is based, has approved the use of public funds to pay off one of LDK’s creditors.

Reports also suggest that LDK may be seeking to nationalise, although details of such a plan have not been released.

The creditor in question is Huarong International Trust, a subsidiary of China Huarong Asset Management Corporation, one of a handful of state-owned Chinese asset management firms.

Huarong issued LDK a three-year loan worth 500m yuan ($78.5m) in August 2009 as the company – the world’s largest maker of PV wafers – raced to expand its production of polysilicon, cells and modules. The amount owed to Huarong ticked up in later financial…

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