Jiangxi Levi Repurchase Terms Cancelled

Plans don't keep up with change. Only two months after the announcement of the "Debt Restructuring Agreement Agreement" between Xinda Xinzi and Jiangxi LDK, the "unbreakable" repurchase terms will change qualitatively.

Xindaxin Materials announced today that the company and Jiangxi Levi have signed a strategic cooperation agreement that cancels the terms of the repurchase agreements in the previous agreement and re-statements that, after the expiration of 6 years, LDK Solar may not buy back 3 solar energy from the company. A power station, and the company has the right to transfer the power station or perform other disposals after the lease expires.

Under the cold current of the photovoltaic industry, solar silicon wafer slicer Jiangxi Levi suffered a huge loss and the capital chain frequently slammed. The “butterfly effect” that it caused affected many downstream listed companies such as Beijing Express and Xindaxinxin. In June of this year, due to the spread of the LDK crisis in Beijing, Beijing Yuntong terminated its nearly 1.2 billion yuan contract with it. Subsequently, Beijing Express thoroughly “turned its face” and lodged an arbitration with the Shanghai Arbitration Agency, requesting a breach of contract of RMB 100 million to the Jiangxi Games. gold.

In this context, Xindaxinxin proposed a set of own disposal plan for the huge accounts receivable of Jiangxi LDK, namely, the 3 solar power stations owned by Jiangxi LDK to offset the debts of the company's accounts receivable. Bad debt risk. Xindaxin material announced on October 25th that Jiangxi LDK plans to transfer 3 solar roof power plants to the company and offset RMB 140 million in the company’s debt due to the RMB 140 million transfer of power plants. The company leased the above three solar rooftop power plants to Jiangxi Saiwei for a period of six years and the lease fee was 9.9 million yuan per year. When LDK believes it needs repurchase, it can buy back the aforementioned 3 solar rooftop power plants. If there is no repurchase within 6 years, Jiangxi Levi shall repurchase it within one month after expiration, and the repurchase promise is irrevocable.

However, SundaXincao announced today that it was decided by both parties that Jiangxi LDK made a request to cancel the repurchase terms and the company agreed that the contents of the contract between the two parties would be changed to “If, during the lease period, Jiangxi LDK has the ability to buy back, The parties to a specific repurchase agreement are negotiated separately. If Jiangxi Sevi fails to repurchase the power station within the lease term, the company as the owner of the power station has the right to transfer the power station or perform other disposals after the lease expires."

Xinda new material insiders told reporters that in the context of the national policy for photovoltaic companies to vigorously support the power station assets have a broad market prospects, both sides agreed to cancel the repurchase terms are beneficial to everyone.

However, it should not be overlooked that these three solar rooftop power plants are all located on the roof of the LDK Solar plant, two of which are located on the roof of the LDK Phase III plant, and the other is located on the roof of the LDK Phase I and Phase II plants. Jiangxi Seville is inseparable. If it is transferred or used on its own, it will be inconvenient. In this case, a method of debt repayment, which originally used a different approach, has now become a burden for the new big new material "to be tied up."

In response, XindaXincai put forward two major requirements in the strategic cooperation agreement with Jiangxi LDK: First, LDK promised that the raw and auxiliary materials required for its own production at present and in the future will be given priority from the company under the same quality and price conditions. purchase. LDK also guarantees that the proportion of the products purchased from the company each year to its total business needs is not less than 70% before the lease fee for the agreed 6-year lease period is paid to the company; secondly, LDK promises not to be low The share of 70% of the total amount of waste mortar produced by its cutting production is sent to the company for recycling. According to the above-mentioned insiders of Xindaxin Materials, this move is beneficial to the company's further development of the sales of cutting wafers for crystalline silicon wafers, and has increased the company's development efforts in the recovery and reuse of waste mortar.