U.S. wafer manufacturer SunEdison has accepted a US$21.9 million offer from Taiwanese cell manufacturer Gintech Energy Corporation to break a long-term wafer supply agreement.
Gintech agreed to take or pay for wafers from the U.S. manufacturer's subsidiary SunEdison Singapore over a ten-year period under a deal signed in October 2006.
Just one year into the deal it was amended with further changes to the terms negotiated in November 2008, February 2009, September 2009 and April 2011 as the price of solar grade polysilicon plummeted amid a global oversupply.
In a filing by SunEdison to the U.S. Securities and Exchange Commission on Friday, the wafer supplier revealed it will retain $21.9 million of a $57 million security deposit paid by Gintech at the start of the agreement.
The outstanding $35.1 million will be returned to the Taiwanese company in quarterly instalments with the first payment due on December 31 and repayment complete by the end of June 2016.
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