LDK Solar unit to get $11 million additional payment under settlement

By Caroline Salls

Pittsburgh, Dec. 31 – LDK Solar Co., Ltd. subsidiary LDK Solar International Co. Ltd. is scheduled to receive a total of $28 million, including $17 million already paid, under a settlement and mutual release agreement with Solar Power, Inc., according to a news release.

Solar Power is an associate with a roughly 30% equity investment from LDK Solar.

Under the settlement, LDK Solar International agreed to release and discharge Solar Power from all actions, claims, demands, damages, obligations, liabilities, controversies and executions arising out of about $46 million of payables owed to LDK Solar International and subsidiaries.

In exchange, Solar Power will make an $11 million settlement payment, in addition to the $17 million it has already paid.

The $11 million will be paid in seven installments before Dec. 31, 2015. LDK Solar International is entitled to revoke the settlement arrangement if Solar Power defaults on the payment of any agreed installment for more than 30 days, according to the release.

LDK Solar is a manufacturer of photovoltaic products and is based in Xinyu City, China. The company made a Chapter 15 bankruptcy filing on Oct. 21 under case number 14-12387. LDK’s U.S. subsidiaries’ Chapter 11 case number is 14-12384.

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