LDK seeks more debt to pay suppliers, expand solar projects

China's LDK Solar is seeking consent from investors to take on more debt to fund expansion of its manufacturing facilities and its investment in solar farms.

The company, already heavily indebted, will offer noteholders 10 yuan ($1.60) for every 10,000 yuan they hold in its notes due in 2014, the company says in a stock exchange statement.

In return for the payment, investors must agree to certain amendments to a February 2011 indenture to give it more flexibility to boost liquidity and and “increase cash flow under current challenging market conditions”, says the firm.

The changes include allowing LDK to issue up to $200m in convertible preferred shares to settle accounts with suppliers and approval for an additional $350m…

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