Plans don't keep up with change. Just two months after the announcement of the "Debt Restructuring Agreement" between Xinda Xinzi and Jiangxi LDK, the so-called "unbreakable" repurchase terms have undergone a major shift.
Xinda Xin Materials has officially announced that it has signed a strategic cooperation agreement with Jiangxi Levi, which cancels the previous repurchase clauses. According to the new agreement, after the six-year lease period ends, LDK Solar will no longer have the right to repurchase three solar power stations from the company. Instead, Xinda Xin Materials retains the right to transfer or dispose of these assets once the lease expires.
Amid the ongoing challenges in the photovoltaic industry, Jiangxi Levi, a leading solar silicon wafer slicer, has faced significant losses and frequent financial strain. This situation triggered a ripple effect, impacting downstream listed companies such as Beijing Express and Xindaxinxin. In June, due to the spread of the LDK crisis, Beijing Yuntong terminated a nearly 1.2 billion yuan contract with the company. Soon after, Beijing Express turned its back on LDK, filing an arbitration case with the Shanghai Arbitration Agency, seeking compensation of 100 million yuan for breach of contract.
In this environment, Xinda Xin Materials proposed a plan to manage the massive accounts receivable from Jiangxi LDK by using the company’s three solar power stations to offset outstanding debts. On October 25, the company announced that LDK planned to transfer the three rooftop solar plants to Xinda Xin Materials, offsetting 140 million yuan in debt. The company leased these facilities to Jiangxi Saiwei for six years at an annual rent of 9.9 million yuan. Initially, LDK had the option to repurchase the power stations within that time frame, with an irrevocable repurchase clause.
However, Xinda Xin Materials recently announced that both parties agreed to cancel the repurchase terms. Now, if Jiangxi LDK has the financial capability to buy back the power stations during the lease term, they will negotiate a separate agreement. If not, the company will retain the right to sell or otherwise dispose of the assets after the lease expires.
According to insiders at Xinda Xin Materials, this adjustment aligns with national policies that support photovoltaic companies and their power station assets, which are seen as having strong market potential. Both sides believe this change is beneficial for long-term collaboration.
That said, there are still concerns. The three solar rooftops are all located on LDK's own premises—two on the roof of the Phase III plant, and one on the roofs of the Phase I and II plants. These installations are closely tied to LDK’s operations, making them difficult to transfer or use independently. As a result, what was initially a debt-repayment strategy has now become a burden for Xinda Xin Materials.
To address this, Xinda Xin Materials outlined two key conditions in the new cooperation agreement: First, LDK promises to prioritize purchasing raw materials and auxiliary products from Xinda Xin Materials under the same quality and price conditions. It also guarantees that at least 70% of its annual material purchases will come from the company before the full six-year lease payment is made. Second, LDK agrees to send at least 70% of the waste mortar produced from its cutting process to Xinda Xin Materials for recycling.
According to sources within Xinda Xin Materials, these provisions are expected to boost the company’s sales of crystalline silicon wafers and enhance its efforts in waste recovery and reuse. Overall, the revised agreement marks a turning point in the evolving relationship between the two companies.Led Linear Light,Led Linear Strip,Led Linear Pendant Light,Recessed Linear Light
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