Originally signed on October 25, 2006, the agreement called for the supply of wafers by SunEdison Singapore, formerly known as MEMC Singapore, to Gintech for ten years on a take or pay basis starting in the second half of 2007.
Under the original agreement, Gintech was to advance funds to SunEdison in the form of an interest-free loan or security deposit. But the parties have failed to reach a mutually beneficial arrangement even after five formal contract amendments and so mutually agreed to terminate the agreement.
The companies have amended the contract in April 2011, September 2009, February 2009, November 2008 and October 2007 to address issues with respect to Gintech’s price and volume purchase obligations.
However, Gintech has agreed to pay a portion of its security deposit to SunEdison.
SunEdison CEO Ahmad Chatila said that the companies have reached a mutually agreeable conclusion to their supply agreement signed in 2006.
"Gintech has been and continues to be an important strategic partner. We look forward to resuming a mutually beneficial commercial relationship with them," Chatila added.
