REC receives US$35 million for terminating a long-term wafer contract
05. June 2012 | By: RECRenewable Energy Corporation ASA (REC) has agreed to terminate a long-term wafer sales contract and has received USD 35 million cash compensation.
In the period 2006 - 2008, REC entered into a number of long term take-or pay wafer sales contracts and most of the contracts were supported by bank guarantees. REC has now accepted to terminate one of these contracts and has received a cash compensation of approximately USD 35 million.
Income from this cancellation will be recognized in the second quarter 2012.