LDK Solar adds $12.6 million to 4th-quarter ‘doubtful recoveries’

LDK Solar adds $12.6M to 4Q ‘doubtful recoveries’

SUNNYVALE, Calif. — LDK Solar Co., which makes wafers for solar cells, said Wednesday it will need to account another $12.6 million for “doubtful recoveries,” in the fourth quarter of 2009, that is, money it may not receive.

The company said the additional provision for doubtful recoveries was based on updated information about its customers’ repayment ability and its suppliers’ ability to honor contract terms to deliver products or refund money.

As a result, the company’s loss for the quarter was revised to $24.3 million, or 22 cents per American depository share. In March the company reported a fourth-quarter loss of $7.3 million, or 7 cents per ADS, for the final three months of 2009.

Shares climbed 9 cents to $5.17 in after-hours trading. The stock had closed down 27 cents, or 5 percent, at $5.17.