UPDATE 1-LDK Solar files lawsuit against Canadian Solar

Wed Sep 1, 2010 8:19am GMT
 

* Says seeking compensation for breach of contract

* Says Canadian Solar failed to make payments

Sept 1 (Reuters) - Chinese solar wafer maker LDK Solar Co Ltd LDK.N said it has filed a lawsuit against solar module maker Canadian Solar Inc (CSIQ.O: Quote), demanding compensation in connection with the termination of a supply contract.

LDK Solar said Canadian Solar, which has its headquarters in Canadian but manufactures across the world including China, failed to perform its purchase obligations and ceased making payments under a 10-year contract to supply wafers.

Canadian Solar, whose accounting methods are being probed by U.S. regulators, said last month it had notified LDK Solar about terminating its wafer supply agreements. [ID:nSGE67J0HE]

"LDK Solar believes the contract is legal and remains effective, and that Canadian Solar's unilateral action constitutes a breach of the contract," LDK Solar said in a statement.

Canadian Solar could not be reached for comment. (Reporting by Krishna N. Das in Bangalore; Editing by David Cowell)

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