Solar wafer maker LDK Solar Co. made a deal to sell a heavily indebted unit, LDK Anhui, for about $4 million.
The buyer is Shanghai Qianjiang Group, which has agreed to release LDK Solar from a guarantee made to LDK Anhui and its subsidiaries within 12 months.
LDK Anhui, based in Hefei City, China, has “negative net assets” of about $54 million, according to LDK Solar, and it has borrowed some $485 million from banks.
Xingxue Tong, LDK’s president and CEO, said the agreement is part of the company’s efforts to improve its liquidity and working capital.
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