China Sunergy (CSUN) Extends Injunction for REC Wafer Situation; Legal Writ Served

October 13, 2009 8:39 AM EDT

China Sunergy Co., Ltd. (NASDAQ: CSUN) has delivered a petition for an extension of the existing injunction related to the REC Wafer situation to the Norwegian court, as well as filing a legal writ regarding the legal status of REC Wafer Norway AS as a rightful party to any existing contract.

On September 11th, 2009 China Sunergy obtained an injunction at a district court in Norway against REC Wafer Norway AS, prohibiting REC from drawing on certain bank guarantees. The current injunction lasts until October 15th, 2009 and China Sunergy has now delivered a petition for an extension to the Norwegian court.

Along with the petition, China Sunergy has served a writ at the same court in Norway claiming that REC Wafer Norway AS is not, and has never been, a party to the contract entered into between China Sunergy and the dissolved company REC SiTech AS. Consequently REC Wafer Norway AS is not, and has never been, entitled to claim any position according to the terminated contract.

The current actions relate back to September 9th, 2009, when REC Wafer Norway AS terminated the Agreement for the Supply of Monocrystalline Silicon Ingots and/or Wafers entered into between China Sunergy and the dissolved company REC SiTech AS in 2008. At that time, REC Wafer Norway AS demanded payment according to three on-demand bank guarantees, for a total of USD 50 million, issued by Nordea Bank Norge ASA on behalf of China Sunergy as principal and three Chinese banks as sub-guarantors. China Sunergy disputes REC Wafer Norway AS' position as beneficiary to the bank guarantees as well as their position as a party to the contract. This view is supported by China Sunergy's legal counsel in Norway and England.

Related Categories

Corporate News

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?