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LDK Solar has filed an objection for Arbitration and a lawsuit with the China International Economic and Trade Arbitration Commission (CIETAC) in Shanghai, China regarding the company’s allegation that Canadian Solar (CSI) owes compensation as a result of a breach of a 10-year take-or-pay supply agreement signed by the two companies in 2008 and the illegal termination of the agreement.

The contract stipulated that Canadian Solar purchase set amounts of materials at specific prices for the 10-year agreement’s duration. LDK is claiming that CSI failed to perform its purchase obligations and stopped payment, and that the contract as it stood is still legal and remains effective.

Bloomberg’s coverage of the dispute remarked that “Daniel Heck of Canadian Solar declined to comment immediately on the lawsuit.”