Jan 31 LDK Solar Co Ltd said China
Development Bank Corp approved a loan of 440 million
yuan ($71 million), adding to the billions of dollars Chinese
state-run banks have already provided to support the country's
LDK shares were up 8.4 percent at $1.67 in afternoon trading
on the New York Stock Exchange.
The loan will be used to finance LDK's investment in
hydrochlorination technology for the Mahong polysilicon plant in
Jiangxi province, in which LDK has invested more than 12 billion
yuan to date.
LDK said last month that it was working to address liquidity
and working capital concerns and entered into discussions with
certain creditors to obtain additional flexibility.
The company plans to draw down on the loan as market
conditions improve and the necessary equipment is ready for its
use, it said on Thursday.
The government of Xinyu city in Jiangxi province said in
July it would repay some loans of the company, which is based in
The company early last week said it would sell a 12 percent
stake to Fulai Investments Ltd (FIL) for $31.1 million.
FIL, whose sole director and shareholder is Hong Kong-based
Cheng Kin Ming, is primarily in the investment business.
As per the deal, FIL can designate two non-executive
directors to the LDK board upon closing, which is expected
before Feb. 28.
LDK sold a 19.9 stake to state-backed Heng Rui Xin Energy in