- Published: 04 July 2018 04 July 2018
AMSC and Sinovel Wind Group (Sinovel) have entered into a settlement agreement to resolve all existing commercial disputes between the parties. Under the terms of the settlement agreement, Sinovel has agreed to pay AMSC an aggregate cash amount in Renminbi (RMB) equivalent to US$ 57.5 million, consisting of two installments.
Sinovel has agreed to pay AMSC the first installment of US$ 32.5 million by July 5, 2018, and has agreed to pay AMSC the second installment of US$ 25 million (Second Payment) within ten months after the U.S. District Court delivers the first sentence against Sinovel, which is expected to occur on July 6, 2018 (Second Payment Due Date). In addition, pursuant to the terms of the settlement agreement, AMSC and its wholly-owned Austrian subsidiary, AMSC Austria GmbH, have granted Sinovel a non-exclusive license for certain AMSC intellectual property to be used solely in Sinovel’s doubly fed wind turbines. In the event that Sinovel or Mr. Wei does not make the Second Payment by the Second Payment Due Date, the agreement provides that the non-exclusive license will terminate. AMSC and Sinovel have also agreed to submit withdrawal applications to terminate the various legal proceedings between them, with the right to re-file, to the relevant Chinese courts and the Beijing Arbitration Commission.