LDK removed $1.4B liabilities from its balance sheet

odyd12

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Friday, April 19th 2013, 7:39am

LDK removed $1.4B liabilities from its balance sheet

It is pretty interesting how they did this.
Example they paid 340M off from their accounts payable and reduced interest debt by $350M, this was done with $130M revenue and $1.2B "gains" out of asset reduction, accounts receivable.

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explo

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Friday, April 19th 2013, 9:06am

Am I missing something? In the Q4 report liabilities were unchanged. Are you looking at something else or at it in a different way?

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redsolar

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Friday, April 19th 2013, 9:48am

These guys still report $5.27 B assets on their balance sheet!

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solarcat

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Friday, April 19th 2013, 10:10am

I was going to say the same thing redsolar. They still report all their worthless and BS assets. Amazing.

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odyd12

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Friday, April 19th 2013, 11:57am

Quoted from "explo"

Am I missing something? In the Q4 report liabilities were unchanged. Are you looking at something else or at it in a different way?

I am not sure

odyd12 has attached the following file:

ldkliability.png (21.35 kB - 37 times downloaded - latest: May 2nd 2013, 11:00am)

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explo

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Friday, April 19th 2013, 12:07pm

I'm still not following. You say 1.4b have been removed. Do you mean between 12Q3 and 12Q4?

What I see is no change in total liabilities between end of Q3 and end of Q4 and that the Hefei sale will remove 630m liabilities.

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odyd12

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Friday, April 19th 2013, 12:17pm

It ok Explo,

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odyd12

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Friday, April 19th 2013, 3:03pm

I bemused myself when investigating the balance sheet and counted pooling of liabilities twice. However I found interesting things in there. If anyone is open for discussion please add to it.

LDK took three adjustments,

A. Impairment loss of property78,170

B. Impairment loss on assets hold for sale 74,178

C. Impairment loss for goodwill and intangible assets 26,743

So I have some puzzles to solve for you guys:

PPE went down by 568,387M So what are they selling at $646M, if the property went down by only that much? The value of assets hold on sale was set at 646,965, but they took the impariment on it (A) apparently, so was it $721,143M prior to impairment? Going back to property reduction, the asset for sale was extracted from PPE, right? So both A and B should be reflected in this move.. This would leave an asset of $416M for sale.

If above is true, how on the liability portion they pooled $632M as associated with sale, however the borrowing has a reduction of $350M only. Rest is $350M as notes payable and trade bills (supplies another words) and other liabilities.

Any opinion on this, except it is pretty crafty.

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explo

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Friday, April 19th 2013, 3:53pm

I think B. and a 12m AR charge was related to the asset sale. So that's 86m loss on those assets. The book value left is around 14m and will be sold for 19m. So the loss related to the asset sale of 80-90m as guided adds up with the impairment taken to reflect sale price. Roughly.

Originally they were expexting a 58m gain, but that transaction was not approved. Now they'll lose 80-90m instead, so original deal was 140m better.