LDK Solar, the world’s largest maker of solar wafers by capacity, has declared bankruptcy on its US operations due to its more than $1 billion dollar unpaid debt.

Chinese solar company LDK Solar Co Ltd has this week defaulted on a $24 million dollar bond. This comes just a month after rival company Suntech Power Holdings Co Ltd defaulted on $540 million in US bonds, sparking fears about other Chinese companies being unable to repay debt.

The China Development Bank Corporation has recently approved a fifteen-year project loan for two solar power plants with a total capacity of 8 Megawatts combined. The solar power plants are located in California and are wholly-owned by LDK Solar.