LDK Solar Owes 20 Suppliers 600 Million Yuan

(Beijing) – Debt-ridden Jiangxi LDK Solar has defaulted on payments totaling at least 600 million yuan for raw materials and equipment, 20 suppliers say.

"Starting from late last year, LDK Solar was delinquent 15 million yuan to our company," Liu Qingfeng, sales manager of a silica powder supplier, said on July 25. "If it files for bankruptcy, hundreds of suppliers that have business relations with it will fall."
 
Jiangxi LDK Solar has faced difficulty because the solar industry has been beset by overcapacity and shrinking profits. Its creditors have been in talks with its host city government in Xinyu, Jiangxi Province, about loan repayment. And the local government has tried to interest various companies in buying the firm, but with no success.