China-based JYT Corporation has announced a verdict from China' International Economic and Trade Arbitration Commission finding that LDK needs to pay CNY293 million (US$46 million) for breaching contract terms, according to China-based media reports. LDK has also been ordered to pay legal fees amounting to CNY3.4 million.
The verdict is final and LDK will need to pay the charges within 30 days.
According to financial statements released by JYT in September 2011, the firm signed an equipment procurement agreement with LDK in July 2008 to procure up to 580 JYT660 polysilicon ingot furnaces.
Due to the global economic downturn and weak demand in the solar market, JYT and LDK later signed an agreement to delay the procurement. As of June 2012, there were still 461 units of equipment that LDK was yet to procure, equivalent to CNY1.15 billion in value.
JYT sent notifications to LDK asking it to oblige to the agreement in 2012 and decided to file for arbitration when other methods failed.