LDK Solar CO., Ltd. in provisional liquidation (LDK Solar) announced that, its subsidiary, LDK Solar International Company Limited (LDK Solar HK), has entered into a settlement and mutual release agreement with Solar Power, Inc. (SPI), an associate with approximately 30% equity investment by LDK Solar.
Pursuant to the arrangement, LDK Solar HK agreed to release and discharge SPI from all actions, claims, demands, damages, obligations, liabilities, controversies and executions arising out of SPI's payables of approximately USD$46 million to LDK Solar HK and subsidiaries, in exchange for a settlement amount of USD$11 million, in addition to the USD$17 million already paid by SPI. Pursuant to the settlement and mutual release agreement, SPI will pay the USD$11 million additional settlement amount in seven installments before December 31, 2015 in accordance with an agreed schedule. Unless extended with mutual agreement, LDK Solar HK is entitled to revoke the settlement arrangement should SPI default in the payment of any agreed installment for more than 30 days.