It is just a juristiction case.......which means we have spent almost 2 years in bureaucratic limbo. I think it is becoming quite clear that AMSC has better odds of returning to profitability before the Chinese court system ever finalizes this case. Hopefully things are going better with the abritration commission......
question? It is my understanding that AMSC has a letter of credit from a Chinese bank that pays for the product received by Sino if Sino doesn't pay, but only after legal means to collect money owed is finished. Anyone know if that is still (ever) the case?
Since this court case decides some of the jurisdictional issues about what the arbitration commission covers and what it does not, resolution of this issue should at least let the arbitration run its course. As I understand it, the arbitration and the court cases are separate. The arbitration should have been decided before now but they could not move forward without considering what exactly they are considering. So, hopefully, positive, though modest news from the arbitration followed by a hint of when the court case will be considered.
I wonder if this announcement had anything to do with the price action of the past few days? Both sides should be motivated to settle before the court either crushes AMSC or slaps down the lower court sending it a pretty clear message.
I have a gut feeling that arbitration will speed up following the supreme court ruling. First, part of Sinovel's jurisdictional objection is that they claim the IP infringement should be heard in arbitration, not the courts. So perhaps the arbitration commission has been waiting to see what the supreme court has to say about that. Second, even though the hearing is only about jurisdiction (not the merits of the case), I think the supreme court could send a message on where it stands on the entire issue, and all parties (the arbitration commission as well as lower courts) are waiting for guidance.
I believe that if there are to be monetary rewards to amsc, it will come sooner from arbitration than from the courts.
Just a guess on my part.
I believe May 29 is just a hearing, and then we have to wait again before the supreme court writes a decision.