LDK Solar files suit against Canadian Solar over contract dispute

Reuters reports that LDK Solar said Canadian Solar, which has its headquarters in Canada but manufactures across the world including in China, failed to perform its purchase obligations and ceased making payments under a 10-year contract to supply wafers.

The news source added that Canadian Solar, whose accounting methods are being probed by U.S. regulators, said last month it had notified LDK Solar about terminating its wafer supply agreements.

"LDK Solar believes the contract is legal and remains effective, and that Canadian Solar’s unilateral action constitutes a breach of the contract," LDK Solar said in a statement.

Canadian Solar could not be reached for comment.