LDK Solar Sells Land for Cash

Source: Netease Finance, ChinaScope Financial (Data)

+       According to the LDK Solar’s (LDK: NYSE) financial results for the second quarter of 2012, the company’s net sales in the period were USD 235.4 million, considerably lower when compared to USD 499.4 million for the same period a year before.

+       Total loss in 12Q2 was USD 92.0 million, a turnaround from gross profit of USD 11.0 million in 11Q2. The financial results also show that during the reporting period, LDK Solar entered into several sales agreements to sell some of its real estate properties and land use rights to local governments for cash.

+       In the second quarter of 2012, LDK Solar paid USD 12 million in interest expenses related to the unrecorded fair value change of certain interest rate swap contracts.

A quick cut down in headcount and steep decline in capacity utilization imply that a full-scale liquidation of LDK is approaching.

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