- Press Releases
July 4 (Renewables Now) - US energy-tech company AMSC (NASDAQ:AMSC) and Chinese company Sinovel Wind Group Co Ltd (SHA:601558) have reached a settlement agreement to resolve the commercial disputes between them.
AMSC said Tuesday that the Chinese wind technology company has agreed to pay to it the Chinese Yuan equivalent of USD 57.5 million (EUR 49.3m) in two installments. The first, of USD 32.5 million, is to occur tomorrow, July 5. The second installment, of USD 25 million, is due within 10 months of the delivery of the US District Court’s first sentence against Sinovel, which is expected to occur on July 6.
Wenyuan Wei, former Sinovel chairman and a shareholder of the company at present, has signed a letter of guarantee to AMSC for the second installment should Sinovel fail to make the payment by the due date.
The Chinese company was convicted by a jury in Wisconsin early this year of stealing trade secrets from AMSC. The disputes actually date back to 2011, since when the companies have been engaged in legal battles in US and Chinese courts. AMSC’s CEO and president Daniel McGahn yesterday said the settlement agreement closes “a challenging chapter” for the company.
Under the terms of the agreement, AMSC and its Austrian unit AMSC Austria GmbH have granted Sinovel a non-exclusive license for certain intellectual property (IP) for use solely in the Chinese firm’s doubly fed wind turbines. That license will terminate if Sinovel or Wei fail to make the second payment in time.
AMSC and Sinovel will submit withdrawal applications to terminate the legal proceedings between them to the relevant Chinese courts and the Beijing Arbitration Commission. They have also agreed to a mutual release covering all subject matters of the commercial disputes, effective upon the successful payment of the second installment.
(USD 1 = EUR 0.86)