LDK Solar Says Arbitration Panel Rules That LDK to Pay JYT in Contract Dispute; Shares Flat Early
LDK Solar ( LDK ) says the China International Economic and Trade Arbitration Commission stated that the wafer equipment supply contract entered into in July 2008 between LDK and JYT Corporation of Beijing (JYT) is valid.
It also said the deal is effective through the duration and at terms and conditions related to quantities and prices set forth therein. Under the contract, LDK agreed to purchase furnaces used in the manufacturing of multicrystalline and monocrystalline ingots for installation in its manufacturing facilities in Xinyu City, China.
As a result, LDK will pay to JYT approximately RMB 294 million as well as approximately an additional amount of RMB 3.4 million to cover arbitral fees accrued as a result of this proceeding.
Shares of LDK are flat in the pre-market session at $1.22, in the shallow end of a 52-week range of $0.71 - $6.92.