Silicon Valley / San Jose Business Journal, Friday, December 18, 2009: LDK Solar warns it may not survive
LDK Solar Corp. warned Thursday that it may not be able to continue as a going concern.
The Chinese company which bases its U.S. operations in Sunnyvale also cut the size of a planned stock offering from 18.9 million shares to 16.5 million, pricing them at an 11 percent discount of $7.
LDK's shares (NYSE:LDK) fell 15 percent on Thursday and finished Friday down by more than 13 percent at $6.82.
LDK said it plans to use money raised by its offering to reduce short-term debt and to fund expansion of its polysilicon production plant and solar-module business. It had a working capital deficit of $1.15 billion as of Sept. 30.