LDK Solar announced that it understands that LDK New Energy Holding Limited has been negotiating with its lenders with respect to the loan outstanding under a credit agreement, dated as of September 26, 2011 among LDK New Energy and the lenders, pursuant to which LDK New Energy has pledged collateral, including ordinary shares and ADSs of LDK Solar representing approximately an aggregate of 52.9% of LDK Solar's total outstanding share capital. LDK Solar further understands that such lenders have agreed to forbear from exercising their power of sale with regard to certain of the pledged collateral arising as a result of various prior defaults under the Credit Facility by LDK New Energy for a period of 12 months toward the end of September 2013, subject to terms and conditions in the forbearance arrangement and negotiation and finalization of the definitive documentation, including an amended and restated Credit Facility.
Investors recovered their poise by midday Thursday after an early sell-off sent stocks sharply lower.