SolarWorld could face bankruptcy as a result of its polysilicon supply dispute with Hemlock. The U.S. polysilicon supplier is claiming up to $793.5 million in damages, in court documents acquired by Reuters today.
While a surprise to few within PV, Germany’s largest PV module producer SolarWorld could be hit by a damages claim for $793.5 million. The damages as a result of legal action taken against SolarWorld by Hemlock regarding long-term polysilicon supply contracts.
The figure stems from outstanding payments totaling $585 million, plus 12% annual interest. As has been previously observed, such a damages ruling would far exceed the financial reserves SolarWorld has at its disposal.
Reuters notes that the damages would approach SolarWorld’s annual sales of €763 million ($839 million) and total more than three times its cash reserves of €183 million ($201 million).