REC terminates wafer contract; receives USD$40 million

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REC has said that between 2006 and 2008 it entered into a number of long-term "take-or pay" wafer sales contracts, most of which were said to be supported by bank guarantees.

The company stated that it has now agreed to terminate one of the contracts for a sum of USD$40 million. The cash compensation will be received in the third quarter.

It is not clear who the customer is and REC could not be reached for further comment.