Note 13 - Line of Credit and Loans Payable

12 Months Ended

Dec. 31, 2014

Note 13 - Line of Credit and Loans Payable [Line Items]

Debt Disclosure [Text Block]

13. Line of Credit and Loans Payable 

(a) Line of Credit

On December 26, 2011, the Company entered into a Business Loan Agreement with Cathay Bank (“Cathay”) whereby Cathay agreed to extend the Company a line of credit of the lesser of $9,000 or 70% of the aggregate amount in certain accounts receivable, which would mature December 31, 2012. LDK agreed to guarantee the full amount of the loan under a Commercial Guaranty by and between LDK and Cathay dated December 26, 2011. The loan was past due and on April 17, 2014, Cathay Bank filed a lawsuit against the Company to recover the $4,250 in principal plus $100 in accrued and unpaid interest from the Company under the terms of the Business Loan Agreement. On May 15, 2014, the Company and Cathay Bank agreed to a settlement in principal and the Company paid Cathay Bank a total of $4,400 to satisfy all of the Company’s obligations owed to Cathay and Cathay withdrew the complaint filed against the Company.

(b) Loans Payable

On December 3, 2014, the Company and China Minsheng Bank (“CMB”) entered into a Loan agreement, whereby CMB provided the Company a loan of $ 5,632 at an interest rate of 5.88% per annum, which would mature on December 3, 2015. The Company pledged its bank financing product (included in the “Short-term investment”) issued by CMB of $19,309 to CMB as collateral. After the bank financing product matures on May 22, 2015, the cash will be transferred into the Company’s bank account and CMB still keeps custody of this account until the repayment of the loan by the Company. 

On December 29, 2014, the Company and Bank of Suzhou (“BOS”) entered into a Loan agreement, whereby BOS provided the Company a loan of $ 32,181 at an interest rate of 7% per annum, which will mature on February 27, 2015.

On December 31, 2014, the Company and CMB entered into a Loan agreement, whereby CMB provided the Company a loan of $ 9,654 at an interest rate of 5.6% per annum, which will mature on June 30, 2015.

Convertible Bond [Member]

Note 13 - Line of Credit and Loans Payable [Line Items]

Debt Disclosure [Text Block]

16. Convertible Bonds

(a) Convertible Bonds issued and cancelled subsequently

On June 3, 2014 the Company entered into an agreement with a non-U.S. investor and issued a convertible bond with nominal amount of $11,000, bearing no interest. The convertible bond may be partially or wholly converted into shares of the Company’s common stock at $0.16 per share conversion price at any time at the option of the investor after December 3, 2014 or if the Company (i) issues shares of Common Stock or securities convertible into shares of Common Stock in an number equal to or more than 46,517,812 shares in the aggregate; or (ii) the Company declares a cash dividend. The convertible bond was due and payable on April 29, 2015.

The host contract was accounted for as liability and $11,000 was recorded as debt upon issuance. The beneficial conversion feature was recognized separately at issuance by allocating the intrinsic value to additional paid-in-capital amounting to $10,312, resulting in a discount on the convertible bond. This discount would be amortized into interest expense using the effective interest method from the issuance date over the convertible bond’s life period.

In July 2014, the Company signed an agreement with the convertible bond holder and cancelled and terminated the original agreement. In exchange of the cancellation and termination of the convertible bond, the Company agreed to issue to the convertible bond holder, 68,750,000 shares of common stock of the Company at a price of $0.16 per share. As a result of these transactions, the Company recorded non-cash interest expense of $1,406 and a non-cash loss of $8,907 on extinguishment in the consolidated statement of operation.

(b) Convertible promissory note issued together with common stock and stock option

In December, the Company entered into three convertible promissory note purchase agreements with Brilliant King, Poseidon and Union Sky, respectively whereby the Company agreed to sell and issue to these three investors convertible promissory notes in an aggregate principal amount of $35,000 which could be converted into 17,500,000 Common Shares at a fixed conversion price of $2 unless adjusted for anti-dilution. The convertible notes bore no interest, and might be partially or wholly converted into shares of the Company’s common stock at any time prior to maturity at the option of the investor. The convertible promissory note was due and payable on June 11, 2016.

As mentioned in Note 17 and Note 18, in December, the Company issued common stock and stock option to the same investors. The Company agreed to issue, and Brilliant King, Poseidon and Union Sky agreed to purchase a total of 7,500,000 Shares at an aggregate purchase price of $15,000, or $2.00 per share, pursuant to the terms of the Share Purchase Agreement and subject to the closing conditions therein. The Company also entered into option agreements with these investors, whereby the Company agreed to grant Brilliant King, Poseidon and Union Sky an option to purchase from the Company a total of 27,500,000 Shares for an aggregate purchase price of $55,000,000, or $2.00 per share. 20,000,000 shares of option granted to Union Sky was expired on March 15, 2015, the remaining 7,500,000 shares of option could be exercised on or prior to the date of completion of the listing of the Shares on the New York Stock Exchange or the NASDAQ Stock Market, pursuant to the terms of the Option Agreement and subject to the closing conditions therein.

The above instruments, including convertible promissory note, common stock and stock option were accounted for as a bundled transaction. The proceeds from the issuance of convertible promissory note and common stock were allocated to the three elements based on the relative fair values of the debt instrument, common stock and the stock options at the time of issuance. The convertible promissory note, common stock and stock options were initially recorded at $32,500, $11,900 and $5,500, respectively, according to the allocation of the total proceeds. The discount of $2,500 of the convertible promissory note is amortized as interest expense using the effective interest rate method through the earliest demand payment date, i.e. June 11, 2016. The stock option is accounted for as an equity instrument is classified within equity. 

The fair value of Convertible bonds was classified in Level 2 of the fair value hierarchy. It is computed using the Binomial Model based on assumptions supported by quoted market prices and rates, adjusted for the specific features of the convertible bonds.