Local Gov't Struggles with Solar Manufacturer's Debt

(Beijing) – Led by China's policy bank, creditors of Jiangxi LDK Solar are in talks with the company's host city government over loan payback.

The local government on July 12 set a provision of 2 billion yuan from the city budget to cover part of the company's financial gap, and officials are scrambling to sell stakes of the troubled company to local state-owned enterprises.