Extension of China Sunergy's Injunction Against REC Granted by Norwegian Court

Submitted by orville on October 16, 2009
in

China Sunergy Co., Ltd. (Nasdaq: CSUN), a specialized solar cell manufacturer based in Nanjing, China, announced today that the Court in Norway has granted an extension of the injunction against REC Wafer Norway AS relating to certain bank guarantees.

On October 15, 2009, the injunction against REC Wafer Norway AS previously granted by the Salten District Court in Norway would have expired. China Sunergy therefore applied for an extension of the injunction. At the same time, China Sunergy served a writ upon REC Wafer Norway AS claiming that REC Wafer Norway AS is not, and has never been, a party to the contract entered into between REC Sitec AS and China Sunergy.

On October 14, 2009, the court ruled that the injunction shall remain in force until the issue covered by the writ is resolved. In the ruling, the court found that it is "sufficiently proven probable that the REC has behaved in a manner that gives rise to a fear that the prosecution or the implementation of the claim will be made significantly more difficult [for China Sunergy] without the temporary court order."

In addition, the court found it "proven probable that China Sunergy has the right to resist the merger between REC SiTech and REC Scanwafer. It is specifically stated in the agreement that no third party has any rights under the agreement." Further, the court stated "[t]here is nothing indicating a payment default in this case."

About China Sunergy Co., Ltd.

China Sunergy Co., Ltd. (Nasdaq: CSUN) is a specialized manufacturer of solar cell products in China. China Sunergy manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. China Sunergy sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets.

Source: China Sunergy