Chinese solar firm LDK defaults on bond

Chinese photovoltaic firm LDK Solar (LDK.NYSE, LD41.FRA) failed to make a US$23.8 million bond payment, becoming the second major firm in the Chinese industry to default, The Wall Street Journal reported. The firm missed the payments because of a “temporary cash-flow shortage” but worked out a deal with two bondholders to put off US$16.6 million in payments, LDK said Tuesday. The company remains in discussions about the remainder of the debt. The default comes after China’s Suntech Power Holdings (STP.NYSE, S9H.FRA) failed to make a payment on US$541 million in notes last month. A Chinese solar boom helped create a global glut in the industry that has hurt profitability across the sector.