A Chinese court has overturned its previous decision to throw out a legal dispute between LDK Solar and Canadian Solar over a wafer supply contract between the two companies.
The Jiangsu Suzhou Intermediate Court has ordered a re-hearing of LDK’s case, in which the debt-stricken Chinese manufacturer had claimed enforcement of an RMB248.9 million (US$40.1 million) arbitration award over an alleged breach of contract by Canadian Solar.
The contract related to a wafer supply deal agreed between the two companies between October 2007 and June 2008 that was eventually terminated.
Although LDK's original case was thrown out in May, the court has overruled this decision after LDK appealed to the Jiangsu Provincial High Court to review the case.
Canadian Solar said it would continue to “vigorously contest the merits of the arbitration award” in a statement issued today.