REC receives US$35 million for terminating a long-term wafer contract

Renewable Energy Corporation ASA (REC) has agreed to terminate a long-term wafer sales contract and has received USD 35 million cash compensation.

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    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 has received a cash compensation of approximately USD 35 million.

    Income from this cancellation will be recognized in the second quarter 2012.

    http://www.recgroup.com