Arbitration Panel Awards Trina Solar $20.4 Million
An arbitration panel has awarded solar energy company Trina Solar Limited an award of $20.4 million in a dispute between the company and a former customer concerning outstanding account balances. The customer had purchased a solar module and then contested the remaining balance of the purchase, totaling $17.4 million.
Pursuing a policy of aggressiveness when it comes to outstanding receivables even with overseas customers after a series of large-scale defaults, Trina Solar moved to file a lawsuit in the matter but arbitration was mutually agreed upon.
The arbitration panel awarded Trina Solar not only the owed balance of $17.4 million but an addition $3 million to cover sales tax and accrued interest on the outstanding amount, estimating the company’s losses because the owed monies were never paid. The announcement of the arbitration panel’s decision has not only revised Trina Solar’s 2013 financial reports but has elevated the company’s stock price eight cents per share as well. Trina Solar’s CFO, Teresa Tan, expressed hope that the arbitration decision would send a message that Trina Solar will forcefully enforce its sales agreements in all current and future dealings to ensure a healthy financial outlook for the company, which provides solar panels and modules to businesses, municipalities and individuals worldwide.