Update: China Sunergy continues bid to prevent REC accessing US$50 million bank guarantees

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China Sunergy is attempting to gain an extension to an existing injunction, preventing REC from accessing US$50 million in various bank guarantees the Chinese PV manufacturer made in relation to long-term wafer supply agreements. However, the company is also filing a legal writ regarding the legal status of REC Wafer Norway AS, which China Sunergy claims was not the party to the contract as this had been signed with REC SITECH, which was later reorganized by REC. The current injunction lasts until October 15th, 2009.

China Sunergy has been publically vocal on the move by REC and was critical of REC’s conduct in a video interview with PV-Tech, during the recently held EU PVSEC event in Hamburg.

REC has currently declined to publically comment on the remarks made in the video interview, or on the issues detailed by its customer, preferring to keep the case in the Norwegian courts for the time being.

REC said in September that it had made serious efforts to reach an agreement with China Sunergy over the supply contract renewal but had decided to call upon the existing time-limited bank guarantees to protect its interests.

A large number of polysilicon and wafer suppliers have been forced to lower contract prices and adjust shipment quantities as spot prices fall below contract prices. Long-term take-or-pay contracts were introduced several years ago due to the insufficient supply of polysilicon and rapidly rising prices.

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