LDK Solar Co., Ltd. - Asia Europe Clean Energy (Solar) Advisory Co ...

LDK SOLAR CO., LTD. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
FOR THE PERIOD FROM JULY 5, 2005 TO DECEMBER 31, 2005
AND THE YEAR ENDED DECEMBER 31, 2006
(Amounts in US$ thousands, except share and per share data)
for the eight months ended February 28, 2007 and the net earnings for the two months ended February 28,
2007, respectively. As of April 4, 2007, all the holders of the Series B and Series C preferred shares confirmed
in writing, after their respective reviews of the net earnings up to February 28, 2007, that no adjustment to
their respective Conversion Ratios as determined on the above basis needed to be made.
In April 2007, the Company further agreed with the holders of Series B and Series C preferred shares
that if the Company's public filing for a qualified IPO on or before May 31, 2007, the Conversion Ratio
adjustments for our Series B and Series C preferred shares would be determined with reference to the net
income for the nine months ended March 31, 2007 and the net income for the three months ended March 31,
2007, respectively. As of May 11, 2007, the Company obtained written confirmations from all the holders of
the Series B and Series C preferred shares confirming that, after their respective review of the net income up
to March 31, 2007, no adjustment to their respective Conversion Ratios as determined on the above basis
needs to be made.
Subsequent to December 31, 2006, the Group has incurred additional secured and unsecured short term
bank borrowings with interest rates ranging from 5.695% to 7.050%, primarily to finance the purchases of
equipment. As of May 29, 2007, the Group's short term bank borrowings amounted to US$103,732.
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