Key LDK shareholder given 'forbearance' period on loans

LDK New Energy Holding, the controlling shareholder of ailing Chinese PV manufacturer LDK Solar, has been offered a 12-month “forbearance” period by its debt holders, having defaulted on some of its loan provisions.

The unnamed lenders were pledged shares in LDK Solar as collateral amounting to 52.9% of the company's outstanding share capital.

However, they have agreed not to sell the shares until at least September 2013, LDK Solar says.

The initial credit arrangement between LDK New Energy and the creditors was struck in September 2011.

News of the additional financial breathing space is sure to further raise the hackles of the owners of struggling Western solar manufacturers. Led by SolarWorld, the trade group EU ProSun last week filed a second complaint with the European Commission, this…

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