China Sunergy Co., Ltd., a specialized solar cell and module manufacturer, today announced China Electric Equipment Group Co., Ltd. (CEEG), one of the Company's related parties, failed to perform its payment obligations to the Company on time under the Share Transfer Agreement. This Share Transfer Agreement was entered into between the Company and CEEG with respect to the sales of the equity interests in one of the Company's subsidiaries.
As disclosed before, China Sunergy and CEEG entered into a share transfer agreement on March 26, 2014, amended on August 14, 2014 (the "Share Transfer Agreement"). Pursuant to the Share Transfer Agreement, the remaining two installments, in the aggregate amount of RMB 39.6 million, shall be paid by CEEG prior to August 31, 2014 and September 30, 2014, respectively. However, it failed to make the remaining payment pursuant to the schedule. As of the date of this press release, the total amount paid by CEEG to the Company was RMB 40 million.
The Company is diligently working towards causing CEEG to resolve the issues identified above, and CEEG has agreed to the Company that all remaining payment to which the Company is entitled under the Share Transfer Agreement would be paid in full.