Yingli Green Energy hit with $897.5 USD Arbitration Claim
May 08, 2018
One of the world’s leading solar panel manufacturers based in Baoding, China, Yingli Green Energy Holding Company Limited (NYSE: YGE) (“Yingli” or the “Company”) announced on April 27th 2018 that one of its major suppliers has filed a request for arbitration for its claim against the Company at the London Court of International Arbitration (“LCIA”).
Due to fluctuations in the polysilicon market (which heavily affects photovoltaic solar panel manufacturers like Yingli), the Company locked into a fixed long-term supply contract that it was not able to fully perform. As a result, on December 15th 2017, one of Yingli’s major suppliers notified the Company that they were terminating a “long-term polysilicon supply contract with the Company with immediate effect and claiming no less than US$897.5 million of payments due and payable by the Company under the contract” . Although Yingli had been in contact with the supplier in attempting to resolve the matter, ultimately, the unnamed supplier filed this arbitration claim with the LCIA on April 26th 2018, with Yingli announcing it the next day, April 27th 2018.
Dai & Associates
Dai & Associates is a Transnational law firm that specializes in cross border legal work between the U.S. and China. With a Shanghai office, and partners in both Beijing and Washington D.C., the firm is uniquely situated to help clients communicate with both U.S. and Chinese officials when concerns involving cross border transactions and international arbitration claims.< Back