LDK Solar announced that upon its motion the Superior People’s Court in Jiangxi Province has issued a civil order halting any payment that may be made by the relevant guarantor/counter-guarantor banks pursuant to the guarantee and/or counter-guarantee issued in connection with the prepayments Q-Cells made that amassed to US $244.5 million under a solar wafer supply agreement with LDK Solar.
The injunction also takes other asset preservation actions in aid of execution and will continue for a six month period until May 8, 2010. In other legal news LDK Solar is appealing the decision of the Regional Court of Berlin, which lifted its preliminary injunction on the drawdown by Q-Cells under the German bank guarantee. LDK is also arranging to accelerate the ICC arbitration process as permitted and required under the supply agreement for a fair decision on the substance of the disagreement over the supply agreement.
LDK and Q-Cells both have agreed to work towards a mutually agreeable solution to the dispute and have working negotiations in Europe and Asia.