LDK Solar (LDK) announced after the bell today that during their preparation of the 2009 annual report, they determined an additional provision for doubtful recoveries of approximately $12.6 million for its accounts receivable and prepayment to suppliers. The revised financials were based on updated information about its customers repayment ability and its suppliers ability to honor existing contractual terms for delivery of products or refund of amounts paid.
Shares are hanging in there after the bell today. LDK has strong support around the $5 area and if it can hold that level in the coming weeks, then begin moving with volume, it might provide a compelling entry point.