Norwegian REC to get EUR 22m compensation for annulled wafer deal

Dec 20, 2011 - Norwegian solar power group Renewable Energy Corporation ASA (OSL:REC), or REC, said today it would receive a cash compensation of some NOK 170 million (USD 28.6m/EUR 22m) for the termination of a long-term wafer sales contract.

In addition, certain deliveries of wafers will go forward, the company said.

A total of NOK 160 million of the compensation will be booked in the fourth quarter of 2011, while the cash will be received in the first quarter next year.

The cancelled deal is one of several take-or-pay wafer sales contracts signed between 2006 and 2008, most of which were supported by bank guarantees.

(NOK 1.0 = USD 0.169/EUR 0.130)

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