Chinese turnkey wind and solar developer ZKenergy Science and Technology has added RMB206 million-plus ($33 million) to the list of liabilities of Shunfeng International after its acquisition of former solar giant Wuxi Suntech.
The developer filed a claim for breach of contract over a Suntech module supply deal on September 1, 2014, claiming restitution of RMB206 million paid after the troubled former world number one failed to honour the contract.
With the case due to be heard two days later, Suntech acquired later that year by Cheng Kin Ming‘s Shunfeng filed a counter-claim on Christmas Day 2014 for RMB246.6 million ($39.7 million) in losses; but ZKenergy won its claim last Thursday with the Jiangsu Province Higher People’s Court rejecting Suntech’s counter-claim, according to a report run by the PR Newswire this morning (Friday).
The terms of the judgement stipulate Shunfeng has until Sunday to pay the amount plus interest and penalties.
The additional charges will be based upon the benchmark lending rate of the People’s Bank of China for the nine-month period from March 31 to the end of 2014 plus a figure based on four times the lending rate for the period from January 1 this year until the date of payment. The latter figure is capped at a maximum RMB30.9 ($4.97 million) after which calculation reverts to the benchmark rate.
Under historic People’s Bank lending rates, that adds up to around RMB34,2 million ($5.5 million) in interest and penalties plus around RMB108,000 ($17,395) per day until the RMB30.9 limit is reached and then around RMB27,000 ($4,349) per day.