XML 42 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 16 - Related Party Transactions
6 Months Ended
Jun. 30, 2014
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

16. Related Party Transactions


As of June 30, 2014 and December 31, 2013, accounts receivable from LDK was $3.9 million, primarily related to the receivables from solar development projects with and inventory sales to LDK in prior years.


As of June 30, 2014 and December 31, 2013, the Company had accounts payable to LDK of $38.7 and $50.9 million, respectively, primarily related to purchases of solar panels for solar development projects from prior years. Refer to Note 2—Going Concern Considerations and Management’s Plan, for further discussion related to the accounts payables with LDK. The Company and LDK have agreed to the right of setoff for all intercompany receivables and payables. During the three months ended June 30, 2014, the Company received $11.0 million from the issuance of a convertible bond to a private investor and $6.5 million for the sale of common stock to non-US investors. $8.2 million of these cash proceeds were used to pay down accounts payable due to LDK.


Additionally, in May 2014, the Company entered into a Settlement and Mutual Release Agreement with LDK under which LDK offered a waiver of $18.4 million of the Company’s payables to LDK. $4 million of such waiver was duly executed and the remaining potion is still subject to the consent of the Joint Provisional Liquidator of LDK. The $4.0 million forgiveness of payables to LDK was recorded in additional paid in capital in the Company’s Consolidated Balance Sheet during the six months ended June 30, 2014.


In the three months ended June 30, 2014, Solar Hub entered into an agreement with Calwaii in which Solar Hub exchanged the Company's note payable and HPL's note payable with Calwaii in exchange for Solar Hub's solar projects.


In the second quarter of 2013, LDK forgave $2.6 million in indebtedness to provide an injection of capital to SGT to keep their shareholder capital from going negative and triggering liquidity accounting under Italian statutory law.