April 16 (Reuters) - China’s LDK Solar Co Ltd partially defaulted on a $24 million bond due on Monday, almost a month after rival Suntech Power Holdings Co Ltd defaulted on $541 million of its bonds.
LDK said it has reached a settlement with two bond holders owning about $16.5 million of the 4.75 percent notes in a private negotiation by partially paying in cash. It has also negotiated a loan facility with these bond holders to repay the remaining debt, the company said.
It is not immediately clear as to how much LDK paid to the two bond holders.
Chinese solar companies piled on debt over the past two years to expand manufacturing operations, eventually leading to a glut that sent panel prices down sharply.
That overcapacity, together with falling government subsidies and trade disputes, has prompted a string of firms around the world, including Europe’s Q-Cells, to file for insolvency.
LDK said it was willing to discuss and settle with the remaining noteholders.
The company was not immediately available to comment further.
In March, LDK’s other Chinese peers, Trina Solar Ltd and JA Solar Holdings Co Ltd, said they will be able to pay their U.S. bonds that mature in the next few months. At that time, LDK did not respond to calls and emails seeking comment on its bond maturity.
A group of Suntech’s lenders wanted its main manufacturing unit declared insolvent after the company defaulted on its bonds.