MEMC Electronic Materials (WFR) And Conergy At Impasse Over Supply Contract

MEMC Electronic Materials and Conergy, the German solar company that is MEMC’s second-largest customer, appear to have reached an impasse as they attempt to renegotiate a supply contract. Conergy has been attempting to renegotiate the contract due to the economic crisis and the way silicon prices have dropped over the past year.

According to a report on Barron’s, the situation between the two companies has gotten somewhat unpleasant, with Conergy casting doubt on the validity of the original supply contract AND threatening imminent legal action:

Conergy added that there are “legal doubts over the enforceability of some contractual provisions and the validity of the contract as a whole,” and that its board has authorized management to “take legal action contesting the supply contract no later than the end of April.” Conergy said negotiations with MEMC are continuing, and that they are discussing a deal in which Conergy would not ask for its prepayment to MEMC back, and they would reach a new one-year supply agreement. The company said “it appears that the general terms of this solution will be acceptable to both parties,” but that there is no formal agreement, and that the outcome remains uncertain.

Leave a Reply

Your email address will not be published. Required fields are marked *