In the period 2006 – 2008, REC entered into a number of long term take-or pay wafer sales contracts and most of the contracts were supported by bank guarantees.
REC has now accepted to terminate one of these contracts and will receive a cash compensation of approximately NOK 170 million in addition to certain deliveries of wafers going forward. Wafer deliveries under the existing contract will continue until the end of 2011.
Approximately NOK 160 million of the income from this cancellation is expected to be recognized in the fourth quarter 2011, and the cash amount will be received in the first quarter 2012.
