[odyd 1,304]

What makes you think they would not?

They are already holding the fruit of one of the arrangements. JASO already said no to the proposal, which means the capacity is not good enough, if JA has to build there, or they can say no pretty much to any other outcomes.

I am surprised that you see this so hard wired, despite the industry, consolidation and necessary frugality when it comes to spending.

[Guest Klothilde]

I don't think there are any penalty clauses attached to that agreement, are there? Ususally these types of agreements don't carry any. What's the point of portraying this like a take-or-pay 10000kT poly sourcing contract? Channeling funds away from JASO to the One-And-Only?

[explo 629]

I'm just quoting and linking. Here's the quote of the agreement:

"NOW, THEREFORE, through friendly negotiations and adhering to principles of equality and willingness, the Parties hereby agree and intend to be bound as follows:

I. DEFINITIONS

1. The annual capacity of 3GW silicon wafers, 3GW solar cells and 3GW solar modules, which is expected to be completed in three phases."

Can you point to where JA says they plan to not honor this agreement? Why do they keep talking about it? I mean wouldn't they've bailed by now with the depressed industry and all?

[odyd 1,304]

Explo, where does it say that they will? Is LDK building 25K MT in Mongolia, this is the year they announced they will start to do so. Do you think that Suntech is still buying metallurgical poly from Calisolar and Hoku will deliver $30M worth of poly to Jinko and Hanwha? I have economic environment conditions, business experience of JA, overcapacity and stagnant pricing to say they will not, you have MOU with the city which is desperate to get rid of asset in the same category that nobody wants. Do you think JA management is so naïve? Perhaps we should ask SOL to buy it, to match their imbalanced supply chain? When you type up your response to this question, add it to the reasons why JA will not do it.

[explo 629]

I don't understand the debate here. They've already started the Hefei buildout. They mentioned it in the 20-F filed 10 days ago. I haven't said they'll finish it. I say they haven't said they won't and consolidating the LDK capacity is just one way to ease the glut (no Hefei is not gonna destroy that 0.5b asset). If you will SOL or someone else can take it. I don't care, but I know that valid assets won't go away with defunct companies. Best scenario is that it consolidates and no one installs brand new capacity for a while. JASO is just one example you come to think of for Hefei industrial park since they have built capacity there, right next door. They are not short of cell capacity as SOL is though and refused the Hefei offer just like TSL and JKS did.

[odyd 1,304]

It doesn't sound like Hefei have let this pass. The original timeline is obviously revised and the original cost projection might not apply, but Hefei still expects JA to place their expansion there,

I think I did not understand the persistence you apply yourself with to prove above. I get what is says in the 20-F. The statement above does not sounds that you said they were done. I was saying they were done. What is built is built but nothing close to 3GW even remotely.

I haven't said they'll finish it.

Now this sounds different. I have no problem with evolving points, but this moving argument is clearly not going to allow conclusion, if the position changes every time. Few days ago I said that capacity is dormant and not attracting anyone. I walked away because everyone knew better. I wrote in the article yesterday the same. Nobody wants it, as I said, and media elsewhere seem to agree. Nobody will use it unless is given away. I can see some lease agreement at best. Lastly assets include at least 500MW of module capacity and nobody wants this either. I am going to walk one more time away and perhaps come back when things will be clearer. Happy weekend

[explo 629]

I was saying they were done.

JASO says they're not. I say nothing, but refer to what JASO says. If JASO's plan is different from what JASO says it is (repeatedly for past 18 months), well then you're right. I'm just saying what the communicated plan is not what's going to happen. I might have indicated that I hold the current communicated plan as the assumption of what the actual plan is until further notice. That might have been naive of me. Frankly the topic of JASO is of no interest to me. The important thing is that those who add capacity don't go and order new from GTAT and AMAT in a time of overcapacity. We don't need a bunch of forced SOE PV shops cranking out more panels in the channels.

[Guest littleguyintucson]

It is interesting that this private placement was at the lows of the recent stock prices. Sounds like some back dating and sweet heart deals to me. Still LDK is a dead horse for the most part being kept operating by the local Government. By the way the PR for the power plants is an MOU, remember when all the Chinese were entering into MOU's for future projects that were Gigawatts in size. All driven to prop up the companies with prospects. Nothing came out of those MOU's but trial proof of concept 1 to 5 MW pv projects

[explo 629]

http://investor.ldksolar.com/phoenix.zhtml?c=196973&p=irol-newsArticle&ID=1812935&highlight= Need time for impairment analysis and assessment of certain subdiaries (Sunways?).

[Pop2mollys 414]

http://ir.suntech-power.com/phoenix.zhtml?c=192654&p=irol-newsArticle&ID=1813530&highlight=

[Guest mena]

Impressive. 6 plants all togheter with a sum of 72MW. And they have now shiped 82MW in 2013 that they claim to be marketleader in Thailand. http://www.recgroup.com/en/media/newsroom/REC-wins-contract-for-multiple-solar-projects-in-Thailand-totaling-72-MW/

[Guest Klothilde]

Says never had interest in buying this POS: http://www.pv-magazine.com/news/details/beitrag/buffett-denies-suntech-purchase-rumors--china-business-news-says_100011186/#axzz2SVfkKAYk

[explo 629]

Yeah, surprise, surprise. Buffet has changed the strategy of buying value low to buy negative value at ridiculous prices.

[Guest cfeng]

China Sunergy Co Ltd : Announcement Made Pursuant to NASDAQ Listing Rule 5810(b) 05/07/2013| 08:05am US/Eastern: This non-compliance has resulted from the fact that the Company's reported stockholders' equity as of December 31, 2012 fell below the $10 million threshold as required by the Listing Rules. http://www.4-traders.com/CHINA-SUNERGY-CO-LTD-9686327/news/China-Sunergy-Co-Ltd-Announcement-Made-Pursuant-to-NASDAQ-Listing-Rule-5810-b-16830730/

[odyd 1,304]

Does NYSE have the same? LDK would be on the issue list

[Guest outsmart]

Sunways forced into bankruptcy by the banks yesterday. LDK is such a poorly managed company.

[explo 629]

Xinyu is a big city that have bet on an unhealthy level of mutual support and dependence on LDK. They need to cut their losses now. Defeat here is monumental and local politicians probably don't dare to admit it. Central gov need to step in to save the city before things get out of control by local politicians acting deer in headlights and citizens anger grows.

[Guest outsmart]

...and it is giving China a very bad name. I hope central government / the banks steps in and finally put an end to this farce.

[Guest Klothilde]

LDK is a poster child of Chi subsidies. Not very good for Chi interests in light of the EU tariff investigation.

[explo 629]

LDK is a poster child of Chi subsidies

? Banks loaned them money for poly and wafer capacity build out while shortage and good profits existed here. The company sucked (too bad for banks) and lost billions on its operation as the market conditions changed. Xinyu city itself has acted questionably by loaning money to LDK, but on subsidies I think Solyndra and U.S. is a worse case of central government betting on business and losing tax payers money.