The two contracts, under which Deutsche Solar supplied wafers to Sunways, were originally concluded in 2006 and 2007. In a statement released yesterday, July 18, Sunways said it had "waived its claim for repayment of down-payments in the remaining amount of still approx. EUR 7.5 million already made."
Furthermore, the two parties have amended the terms under which the wafers will be delivered. Initially, deliveries were scheduled to be made until the end of 2018 and 2017, respectively. Following the new agreement, a total of around 60 MW will be delivered in 2012 and 2013. The term of the agreement has further been changed to December 31, 2013 at the latest. "Upon fulfillment of Sunways AGs newly agreed purchase obligations until then, the two long-term supply contracts will be deemed amicably terminated as of that time," said Sunways.
Due to the amendments, the company has made provisions for a loss of 4.6 million, which will be recognized in its 2011 annual financial statements. Moreover, it said a loss amounting to half of its share capital has been recorded. This is both due to the revised agreements and losses incurred by Sunways in the past few months.
"However, compared to the continuation of the long-term contracts on their original terms and conditions, the agreement is economically more advantageous," said Sunways. It added, "The amendment agreement to both long-term contracts is made against the background of current market developments and constitutes an advantage for Sunways AG compared to an unaltered continuity of these contracts."
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Becky Beetz
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