LDK Solar has sued Canadian Solar for allegedly breaching and terminating a supply agreement between the two companies.
It said Canadian Solar failed to perform its purchase obligations and ceased making payments.
LDK Solar has also filed an objection against any attempt to resolve the matter through arbitration outside the courts, before the China International Economic and Trade Arbitration Commission in Shanghai, China.
It signed a ten-year supply agreement with Canadian Solar in 2008, which it said included precise provisions regarding the price and delivery amounts for the duration of the contract.
LDK Solar said it believes the contract is legal and remains effective, and that Canadian Solar’s unilateral action constitutes a breach of the contract.