Tencent Finance Po Choi October 22 reported experiencing layoffs, cut after Zevi, once crumbling. High debt is already common in the photovoltaic industry, seems to bowstring taut, touch off point. Beijing on the evening of October 22, is a critical day for LDK. The Jiangxi Government has finally begun bailout, Zevi not going bankrupt. LDK announced before the market opened, acquired a 19.9% stake in Hengrui New Energy Co., Ltd. signed a $ .86 per share. Current total share capital of 134,000,000 shares, involving an amount of approximately $ 22,930,000, a 25% premium to the current share price of the game-dimensional. Tencent financial analysis, The the government bailout curtain LDK Solar and open next bailout targets are likely to Suntech. The government began to save the city the LDK announcement said, the Hengrui new energy will be entitled to the designated three new directors to the board of directors of LDK Solar, and both parties agree to add two independent directors LDK Solar's board of directors. Hengrui New Energy Co., Ltd. is engaged in the solar energy, investment and utility companies. By Albert Henderson Investment Development Co., Ltd. has a 60% stake, and its 40% stake owned by the State-owned Assets Management Co., Ltd., Xinyu City. Some media reported that Beijing Albert Henderson Investment and Development Co., Ltd. had also invested in Henderson, Ji Yang New Energy Co., Ltd. engaged in crystalline silicon component products. The Xinyu city government bought it LDK solar photovoltaic industry will be the future development trend of wind vane. With the worsening of the European and American photovoltaic market trade war, the domestic market short-term hard to pick up the pace of the rest of the local government bailout will more step the greater. A very Suntech, Tencent financial analysis, the next object to be saved is likely to Suntech. Its insiders, Zhengrong Shi is now rushing in Nanjing, Shanghai, Wuxi. The sources, the Jiangsu provincial government last week held a meeting on Suntech problem alone Zhengrong Shi, the effectiveness of the efforts. As for the specific ways to save? There is no established program. Why Zhengrong Shi to the Wuxi government for help, but to turn to the higher level of the provincial government? Tencent financial analysis, sharp conflicts between the Wuxi government and media reports and Suntech inseparable. Analysts pointed out that Shi Zhengrong, you want to save Suntech, there are two routes optional: First, the government stepped in to buy the company due in March next year, a total of up to $ 575 million of convertible bonds, then CDB injection of rescue, but The premise is Zhengrong Shi, all personal assets need to do unlimited liability guarantees. Another listed company Suntech delisting, and the nationalization of its subsidiaries - core assets Suntech Power Co., Ltd. (hereinafter referred to as "Suntech"). The source pointed out that these programs are Zhengrong Shi rejected his plan Suntech bankruptcy, thus preservation of the listed companies. The above statement Suntech vice president Gong XueJin, denial. Tencent Finance, he said, the Suntech not bankruptcy will not withdraw from the market. Jiangxi government bailout, Wuxi government and the Jiangsu provincial government formation will be greater pressure from the pressure of public opinion. (EDT)
I think Bombloze is correct to view this with some caution at this juncture.
The only thing this PR really tells us is the mathematical basis they will use to calculate the number of new shares issued, and the value Hengrui places on each share. The last real share count we had was in the 20F, which could be considerably inaccurate at present.
We also should bear in mind that LDK lost around $2.4M per day during the first half of this year. Effectively, they're trading perhaps as much as 20% of the company for the functional equivalent of nine or ten days of breaking even.