LDK Solar (LDK) continues its slide lower and is closing in on all time lows after Germany’s Q-Cells ended a solar wafer supply agreementbecause LDK apparently didn’t fulfill significant contractualobligations. It looks like Q-Cells wants out of the contract becauseit can get supplies much lower now than the price the companies agreedon when the contract was put into place in addition to needing somecash. The company claims that the $244 million payment made in early2008 was secured by a bank guarantee and could be reclaimed if theagreement was terminated. Expect the legal wrangling to begin whichwould be a drag on shares of both companies for some time.
Shares of LDK Solar (LDK) are down 14% but off the lows of the day.