LDK follows Suntech in bond default

An LDK plant in China

An LDK plant in China

Embattled Chinese PV group LDK Solar has missed its repayment date on a package of convertible bonds totalling $23.8m excluding interest, following Suntech to become just the second company from mainland China ever to default on its bonds.

The Jiangxi-based manufacturer says that in recent days it privately negotiated a settlement with two bondholders that will allow it to postpone repayment on bonds worth some $16.6m.

However, it has informed the Bank of New York Mellon – trustee for the holders of the convertible notes – that it will not be able to pay the remainder on time.

The notes, which held a 4.75% coupon, were due on 15 April.

LDK is “ready and willing to discuss and reach a settlement for the remaining convertible notes”, it says.

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