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Note 16 - Related Party Transactions
9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

16. Related Party Transactions


As of September 30, 2014 and December 31, 2013, accounts receivable from LDK was $3.7 million and $3.9 million, respectively, primarily related to the receivables from solar development projects with and inventory sales to LDK in prior years.


As of September 30, 2014 and December 31, 2013, the Company had accounts payable to LDK of $34.4 and $50.9 million, respectively, primarily related to purchases of solar panels for solar development projects from prior years. During the nine months ended September 30, 2014, the Company utilized $12.5 million of cash to repay accounts payable due to LDK from the Company. 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.


Additionally, in May 2014, the Company entered into a Settlement and Mutual Release Agreement with LDK under which LDK waived $18.4 million of the Company’s payables to LDK, $4.0 million of which was waived by a PRC subsidiary of LDK and the remaining portion of which was proposed to be waived by LDK and is currently subject to the approval of the Joint Provisional Liquidator of LDK in the Cayman Islands 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 nine months ended September 30, 2014. In October 2014, LDK filed a petition in the United States Bankruptcy Court for the District of Delaware for recognition of the provisional liquidation proceeding in the Grand Court of the Cayman Islands as a foreign main proceeding under Chapter 15 of the United States Bankruptcy Code, and three U.S. subsidiaries of LDK, LDK Solar Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc., filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code in the same court. It is unclear whether LDK’s liquidator or bankruptcy administrator would bring a clawback action to recover the receivable waived by LDK.


In May, 2014, Solar Hub entered into an agreement with Calwaii pursuant to which Solar Hub transferred to Calwaii its payment obligations under the notes payable due to the Company and HPL, respectively, as well as its ownership in all of its solar projects.


In the second quarter of 2013, LDK forgave $2.6 million of indebtedness to provide an injection of capital to SGT to keep their shareholder equity from going negative.