One of Yingli Green Energy’s polysilicon suppliers isn’t happy and wants $897.5-million. The company acknowledged “some of its subsidiaries had “not fully performed some of [their] long-term polysilicon supply contracts on their original terms.” The seller wants to immediately terminate its long-term polysilicon supply contract in addition to the money.
Yingli previously entered into an agreement with this supplier on Nov. 13, 2017 in which the supplier agreed not to initiate any suit, claim, arbitration or other proceeding against the company in connection with the contract before Mar. 31, 2018. Yingli is still in discussion with the supplier to find an amicable solution. However, the company’s negotiation efforts may not be successful and it cannot assure investors that the supplier will not bring any legal action against the company to enforce its rights under the contract in the future.
While Yingli does not expect termination of the contract to negatively affect the company’s polysilicon procurement, the company is still assessing potential impact on its financial condition and results of operation if an amicable solution cannot be found with this supplier.