PEKING (dpa-AFX) - LDK Solar Co. Ltd. (LDK) has reached an agreement with Japan-based Sumitomo Corp. to terminate their long-term solar wafer supply deal. Pursuant to the agreement, originally inked in September 2008, LDK Solar was to supply multicrystalline silicon wafers to Sumitomo over an eight-year period, beginning in 2009 and extending through 2016. According to the original agreement, Sumitomo made an advanced payment representing a portion of the contract value to LDK Solar.
In exchange for LDK's deal to terminate the supply agreement, Sumitomo would pay LDK Solar a settlement amount totaling $33.4 million. LDK Solar is assessing the financial impact on its full year 2012 earnings of the Sumitomo termination and related contract termination charges.
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