United Photovoltaics Group Limited has submitted applications to withdraw its HK$500 million (US$90 million) lawsuit against Hareon Solar Technology Company Limited, having received payment from a Hong Kong-based Global High Growth Industries Fund Series SPC, acting on behalf of China Huacai Finance Equity Investment Fund SP.
Under a tripartite agreement, announced last week, the SPC entered into a deed of assignment relating to a 930 MW solar PV deal made between United PV and Hareon last year, the terms of which were not fulfilled by the agreed upon date.
United PV said it would assign and transfer all of the rights, obligations and responsibilities, including the claims under the Cooperation Agreement from Hareon to the SPC, if the HK$500 million plus interest was paid back, over three installments, and if Hareon reimbursed United PV all arbitration and legal costs to the tune of RMB 5.6 million (around US$851,172).
Under the terms, United PV also said it would drop the lawsuit after the first two payments, totaling HK$250 million were made, along with Hareons RMB 5.6 million. This, reports the company today, has now all been received.
The lawsuit could still be re-initiated, if the third, HK250 million is not paid.