LDK Solar (LDK) needs quite a bit of cash in a hurry to stay alive and the CEO stated in an SEC filing, “If we do not successfully execute our liquidity plan, we face the risk of not being able to continue as a going concern.” The company has sold a $50 – $80 stake in its polysilicon business through convertible preference shares to VMS Investment Group and will raise another $150 million through a stock offering. Adding further pressure to the company’s liquidity will be the pay backs to Q-Cells as part of their agreement to drop litigation. These aren’t huge payments for a company doing over a billion a year in revenue, but for a company facing a liquidity crisis, it doesn’t help.
Here’s the schedule of repayments:
- $6.9 million in 2009
- $48.9 million in 2010
- $48.9 million in 2011
- $51.3 million in 2012
- $29.3 million in 2013
- $29.3 million in 2014
- $29.3 million in 2015
Shares of LDK were down 15% today with big sell volume.