Solar power firm Sky Solar Holdings Ltd (NASDAQ:SKYS) on Tuesday said it has completed its investigation of actions of its former CEO and reached an agreement to cancel certain debt assignment agreements from April.
The investigation concluded that certain transactions and fund transfers between Hong Kong-based independent power producer (IPP), focused on solar projects, and entities controlled by ex-CEO Weili Su had been carried out without board and audit committee approval. There was also insufficient documentary support of such fund transfers.
A settlement agreement between Sky Solar and Su has been signed on September 19, under which various debt assignment agreements signed in April 2017 with certain third parties and entities controlled by Su shall have no effect and be rescinded immediately.
Also, Su agrees to pay to the company about USD 15 million (EUR 12.5m). Failing to do so will result in the sale or transfer to Sky Solar of company shares held by the former CEO to cover the settlement amount.
The settlement agreement resolves all potential claims by the company against Su and entities controlled by him, and vice versa.