LDK Solar Co. Ltd. says the Superior People's Court in Jiangxi Province, China, has issued a civil order freezing any payment that may be made by the relevant guarantor/counter-guarantor banks pursuant to the guarantee and/or counter-guarantee issued in connection with the prepayments made by Q-Cells SE.
Earlier this month, Q-Cells terminated its wafer supply contract with LDK Solar over an alleged failure of LDK Solar to fulfill its contractual obligations. Q-Cells has claimed that the accusations and contract termination are invalid.
Q-Cells made prepayments in the aggregate amount of $244.5 million under the solar wafer supply agreement with LDK Solar. The injunctive relief also takes certain other asset preservation actions in aid of execution and will remain effective for a period of six months until May 8, 2010.
Separately, LDK Solar says it has appealed the decision of the Regional Court of Berlin that lifted its preliminary injunction on the drawdown by Q-Cells under the German bank guarantee. LDK Solar is also making arrangements to speed up the ICC arbitration process as permitted and required under the supply agreement for a fair determination on the substance of the dispute over the supply agreement.
Alongside these actions, LDK Solar and Q-Cells have been engaged in negotiations in Europe and Asia with a view toward reaching a mutually agreeable solution to the dispute.
SOURCE: LDK Solar Co. Ltd.