LDK Solar wins USD-40m arbitration award on supply deals
Dec 13, 2012 - Chinese photovoltaic (PV) products maker LDK Solar Co Ltd (NYSE:LDK) said today it had received a CNY-248.9-million (USD 39.9m/EUR 30.6m) arbitration award in relation to wafer supply contracts with Canadian Solar Inc (NASDAQ:CSIQ).
On Wednesday, the China International Economic and Trade Arbitration Commission (CIETAC) said that the contracts, signed in October 2007 and June 2008, were valid and effective with the duration and quantity and price conditions set in them. As a result, Canadian Solar should pay CNY 248.9 million as a compensation to LDK Solar, including a CNY-60-million deposit that has already been paid and RMB 188.9 million in additional cash. Canadian Solar will also need to pay another CNY 2 million to cover arbitral fees.
LDK Solar started the arbitration proceedings more than two years ago.
Separately, LDK Solar said on Wednesday it had hired US bank Citigroup (NYSE:C) to help it in its efforts to address the liquidity and working capital issues disclosed in its 2011 report. The company added it had started talks with certain creditors to get additional flexibility in relation to the terms of its existing offshore debt.