LDK: Cash Crunch Looming? 赛维LDK即将囊中羞涩？

By newsdoug on May 20, 2011

The cash clock appears to be ticking down for struggling LDK Solar (NYSE: LDK), which has just announced it’s aborting a previous debt raising plan, citing adverse market conditions (company announcement) Indeed, shares of leading solar companies like Trina (NYSE: TSL) and Suntech (NYSE: STP) haven’t fared all that well lately, with both companies’ stock down around 25 percent over the last 3 months, compared with a flat performance for the S&P 500. But LDK’s stock was already down an even steeper 40 percent over that period, and sank another 4 percent after this latest development. My sources have said the Cash crunch looms for LDK company, which already suffers from other issues, needs cash soon, even though its latest announcement says it “still expects to generate sufficient operating cash flow to support our business plan.” With another plan to raise cash through an IPO of its polysilicon assets apparently on hold for the moment, one wonders how long this company will be able to weather its current cash crunch before it’s forced to do something more desperate — perhaps the sale of some assets at a steep discount or perhaps even something more drastic. Stay tuned for more news on this developing saga in the months ahead.

Bottom line: LDK’s aborted debt raising is a sign of a company in need of quick money, with a more dire cash-raising exercise likely in coming months if its prospects don’t quickly improve.

看样子，近况不佳的江西赛维LDK太阳能<LDK.N>很快就会囊中羞涩了。这家公司刚宣布放弃债券融资计划，称市场环境恶劣。的确，天合光能<TSL.N>和尚德电力<STP.N>等行业领先者的股价最近也表现欠佳，过去三个月来都下跌了25%左右，而标普500指数在此期间大致持平。而同样在过去三个月里，LDK的股价跌幅更大，达40%。公司最新做出上述决定後，股价又跌了4%。消息人士称，这家问题缠身的公司很快就会急需现金，尽管公司在最新声明中称它“仍预计能产生足够的运营现金流来支持企业发展”。由於该公司将其多晶硅资产上市的计划目前显然已经搁浅，一切都不免让人担心这家公司在当前的现金危机面前还能撑多久。当然它还可以殊死一搏，比如以深度折让价格出售资产，甚至是更大的动作。未来几个月，请继续关注这场大戏如何发展。

一句话：江西赛维LDK太阳能放弃债务融资计划意味着这家公司即将出现现金短缺，未来几个月有可能被迫作出更激进的融资举措。