The Money was formally given to China Sunergy today.
The two companies entered into a settlement agreement on 17 October 2011, and on 28 October, China Sunergy made a settlement payment to REC Wafer. Neither the amount of the settlement and nor the amount of that specific payment have not been disclosed.
"We are glad to put this dispute with REC Wafer behind us, and China Sunergy is satisfied with the settlement terms,” said Stephen Cai, CEO of China Sunergy. “The released $50 million in bank guarantees go straight back into our working capital and will strengthen the company's ability to weather the current tough solar market."
The two companies have been at loggerheads since 2009, when China Sunergy served a writ upon REC Wafer, claiming REC is not a party to the contract between China Sunergy and the dissolved REC SiTech AS.
In July 2010 a vourt in Norway ruled against China Sunergy in the case. The Company appealed the ruling in August 2010.
In the meantime, China Sunergy pursued a separate action related to the $50 million loan guarantee. The Court of Appeal decided that the injunction was to remain in force until it could pass judgment on the main case.
On 30 June 2011, the court of Appeal ruled in favour of China Sunergy and determined that REC Wafer was not, and had never been a party to the contract. As of a result, the court said. there was no reason not to release the funds.
For additional information:
