NANJING, China, Nov. 29, 2010 /PRNewswire-Asia/ -- China Sunergy Co., Ltd. (Nasdaq: CSUN) ("China Sunergy" or the "Company") a leading solar cell and module manufacturer based in Nanjing, China, today announced that the Company had received updated court proceeding with regard to the dispute with REC Wafer Norway AS ("REC Wafer").
In a ruling made by the Supreme Court of the People's Republic of China on November 5, 2010, the Court denied the appeal filed by REC Wafer and made the final and binding decision that the Jiangsu Higher Court shall have Jurisdiction over the case.
The Court of Appeal in Norway has recently granted the injunction China Sunergy petitioned and ordered that Nordea Bank Norge ASA is prohibited from making payment and REC Wafer is prohibited from receiving payment in accordance with the USD 50 million bank guarantees issued by Nordea Bank Norge ASA to REC Sitech AS. The injunction will remain in force until the Court of Appeal makes a ruling on the main dispute.
In addition, the court in Norway has ordered that REC Wafer Norway AS pay China Sunergy approximately NOK501,761 to cover the costs relating to the Court of Appeal and the District Court.
The court proceeding in Norway regarding the main dispute is still ongoing. The Norwegian District Court ruled on July 5, 2010 in favor of REC Wafer. China Sunergy appealed the ruling at the Court of Appeal, claiming REC Wafer is not a party to the contract originally entered between China Sunergy and the dissolved REC Sitech AS. The Court of Appeal will hold a hearing in March 2011.
Previous Development
Regarding the ongoing dispute with REC Wafer, the Norwegian District Court ruled on July 5, 2010 in favor of REC Wafer, and China Sunergy filed an appeal against the ruling in August, 2010.
In parallel to the main dispute, the Supreme Court of Norway ruled on July 15, 2010 and overturned the Court of Appeal's order which denied China Sunergy's injunction petition with regard to a $50 million bank guarantee. The injunction petition was sent back to the Court of Appeal for a new ruling.
China Sunergy has also served a writ upon REC Wafer, claiming that REC Wafer is not a party to the contract between China Sunergy and the dissolved REC Sitech AS. The Salten District Court in Norway has, after an oral hearing, denied the claim from China Sunergy. Based on the ruling from the Supreme Court, China Sunergy has appealed the ruling from the district court. The hearing at the Court of Appeal will be held in March 2011.
China Sunergy has separately filed a lawsuit against REC Wafer with the People's High Court of Jiangsu Province, the People's Republic of China. The court in China has issued an injunction to the related banks to forbid these banks from making payments related to the bank guarantees. In April 2010, the People's High Court of Jiangsu Province rejected REC Wafer Norway AS's objection to jurisdiction after an oral hearing. REC Wafer has filed an appeal against the decision of jurisdiction to the Supreme Court of the People's Republic of China.
About China Sunergy Co., Ltd.:
China Sunergy Co., Ltd. (Nasdaq: CSUN) ("China Sunergy") is a specialized manufacturer of solar cell and module products in China. China Sunergy manufactures solar cells from silicon wafers, which utilize crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect, and assembles solar cells into solar modules. China Sunergy sells these solar products to Chinese and overseas module manufacturers, system integrators, and solar power systems for use in various markets.
For more information please visit http://www.chinasunergy.com.
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For further information contact: |
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FD |
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Helen Jing Zhu: Helen.JingZhu@fd.com |
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Phone: + (86) 10-8591-1958 |
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Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts in this announcement are forward-looking statements. These forward-looking statements are based on current expectations, assumptions, estimates and projections about the Company and the industry, and involve known and unknown risks and uncertainties, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and the marketability of its products; litigations and other legal proceedings; the economic slowdown in China and elsewhere and its impact on the Company's operations; demand for and selling prices of the Company's products, the future trading of the common stock of the Company; the ability of the Company to operate as a public Company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; future shortage or availability of the supply of raw materials; impact on cost-competitiveness as a result of entering into long-term arrangements with raw material suppliers and other risks detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
