LDK gets bond interest reprieve

Debt-laden Chinese PV group LDK Solar said it has struck a deal with creditors to give it more breathing space over unpaid interest on some of its bonds.

The forbearance agreement with “a majority” of holders of its US dollar-settled 10% 2014 senior notes extends to 27 October payments due on 26 August.

LDK, which recently hired investment bank Jefferies to advise it on strategy over its offshore debts, said it hopes “the forbearance arrangement is the first step in achieving a consensual solution to its obligations under the notes.

“ It is LDK Solar's intention to find a consensual solution as soon as possible,” the company told its investors.

LDK Solar lost $165.3m in the most recent financial quarter, its ninth consecutive quarterly deficit, and was more than $1bn in the red for 2012.