Having announced in July it would ‘vigorously contest’ a claim against it over an allegedly breached solar wafer manufacturing equipment contract, GCL Poly said yesterday it had negotiated a suspension to arbitration proceedings after amending the disputed contract with one of its equipment suppliers.
On July 15, GCL Poly Energy Holdings had announced to the Hong Kong Stock Exchange that it had received notice of a claim, six days earlier, against one of its wholly-owned subisidiaries Taicang GCL Photovoltaic Technology.
An unnamed equipment supplier was claiming GCL Taicang had failed to purchase the full number of units of wafer manufacturing equipment agreed to in a supply contract worth HK$1.8 billion (US$232 million).
In ist initial response, GCL Poly said it would "vigorously contest the claim and take all appropriate steps to defend its position against the claimant’s allegations."
In an update to the Hong Kong exchange yesterday, GCL announced an arbitration lodged by the claimant with the Hong Kong International Arbitration Center has been suspended pending the fulfilment of an amended version of the supply contract at the center of the dispute.
The update added GCL Poly which is set to be renamed the United Photovoltaic Group next month will not face any increased financial obligations under the terms of the amended agreement.