United States

United States

AMSC secures $25m finance

UNITED STATES: Wind component company AMSC has secured $25 million financing from an unnamed investor.

Google Translate

The company said it had issued 7% notes at $4.85 a share, 21% more than 3 April's closing share. Subject to certain conditions, AMSC said it also had the right to require the investor buy an additional $15 million in notes.

AMSC said the money would be used "for working capital and general corporate purposes." In August last year, it announced it was reducing its work force by 30% as a result of its legal fight with former customer, Sinovel. It was also forced to restate some of its quarterly revenues for 2011.

The company is seeking damages from the Chinese company in its battle of IP theft and order cancelations.

AMSC has filed for arbitration and has three civil lawsuits in the Chinese courts against Sinovel. It is seeking to recover $1.2 billion following the Sinovel's decision last year to refuse a multi-million dollar shipment of turbine components and alleged intellectual property theft.

In February, AMSC's legal battle against Sinovel has received a boost after a Beijing court denied the Chinese company's motion to transfer one of the lawsuits.

The case in question is a civil legal action brought about by AMSC and accusing Sinovel of software theft and unauthorised use of the US company's control system source code. AMSC is seeking $6 million in damages in this case.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in