According to market buzz the litigation between REC Wafers and Moser Baer Photo Voltaic Ltd. ("MB") (subsidiary of Moser Baer India ltd) is coming to an amicable out of court settlement. The liability of Moser baer for terminating a long term contract was pegged close to US$500 mn . According to sources out of court settlement is in favour of moser and will lead to savings of 500 mln.... as they might have reworked the contract.
Background
REC announced the 8-year contract with MB on July 26, 2007, in which annual volumes are scheduled to increase over time to a peak at around 60 MW per year.On February 10, 2010, MB announced that they had terminated the contract, due to alleged quality issues. For the same reasons, the company tried to prevent REC from calling upon the bank guarantees.
Background
REC announced the 8-year contract with MB on July 26, 2007, in which annual volumes are scheduled to increase over time to a peak at around 60 MW per year.On February 10, 2010, MB announced that they had terminated the contract, due to alleged quality issues. For the same reasons, the company tried to prevent REC from calling upon the bank guarantees.
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