December 30, 2010 / 2:21 PM / 7 years ago

UPDATE 1-Tower Int'l to take $5-$10 mln Q4 charge

2 Min Read

* Charge associated with contract termination

* Charge reflects invested capital costs of about $15 mln

Dec 30 (Reuters) - Auto parts supplier Tower International Inc (TOWR.N) said it would take a fourth-quarter pretax impairment charge of $5-$10 million as its solar customer Stirling Energy Systems terminated a purchase contract.

In a regulatory filing, Tower said it has been notified that the power-purchase agreement for one of Stirling Energy Systems' two principal solar projects -- the Calico project -- has been terminated.

Tower International said the charge reflects previously disclosed invested capital costs of about $15 million.

It is "prudent at this point" to anticipate that Stirling's other principal solar project -- the Imperial Valley project -- is likely to be similarly affected, The company added.

Shares of Tower International, which went public in October, closed at $17.55 on Wednesday on the New York Stock Exchange. They have gained 35 percent of their value since debut. (Reporting by Bijoy Koyitty in Bangalore; Editing by Maju Samuel)

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