Settlement of lawsuit against the insolvency administrator of Conergy
Meyer Burger Technology Ltd has announced that the long-standing lawsuit of its subsidiary Roth & Rau AG against Conergy Solar Module GmbH & Co. KG, or rather against the insolvency administrator of the Conergy Solar Module GmbH & Co. KG assets, will be closed with an amount paid in settlement.
In 2006 Roth & Rau AG entered into an agreement with Conergy Solar Module GmbH & Co. KG to supply and install four cell manufacturing lines. Roth & Rau AG considered that it was still entitled to receive payments under this agreement, which Conergy Solar Module GmbH & Co. KG consistently refused to pay and who for their part claimed damages that represented a multiple of Roth & Rau AG's receivables. Roth & Rau AG had already written off these receivables in the past years and made a provision for the costs of this lawsuit in fiscal year 2010.
Under the achieved agreement, Roth & Rau will pay an amount of EUR 2.5 million in settlement. These expenses including the legal costs are covered by far by the provision set aside in 2010. For the income statement 2014, the release of the remaining provision that is not used anymore in this respect will lead to a positive effect of about EUR 3 million on the results.
The settlement agreement and the cessation of the claims have been determined by the Hamburg local court (Landgericht Hamburg) as at 23 December 2014.