Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ Windfarms continues to withhold payments

NZAX Statement: November 2nd 2009
Windflow Update: NZ Windfarms continues to withhold payments

Windflow Technology Ltd (WTL) has completed the construction program for the 65 turbines on site at the Te Rere Hau (TRH) wind farm and is completing commissioning of the last two of these turbines. The turbines at TRH are performing well. WTL is now focusing on completing the build of the remaining 32 turbines which were ordered unconditionally by its customer NZ Windfarms Limited (NWF) in September 2008.

NWF has delayed the installation of these 32 turbines and has requested a variation to the contract to allow them to do so. This is to allow NWF to gain a resource consent for an extension to the TRH wind farm and place the turbines ordered on the extension area. To date an agreement has not been reached on this matter.

In mid-August NWF began withholding payments from WTL asserting a right of ‘set off’ resulting from differences between the turbines supplied for TRH and the final design submitted for IEC Certification.

WTL strongly denies that NWF has either any such right of set off or a right to IEC Certified turbines under the Sale and Purchase Agreement (SPA) between the parties. WTL has made efforts to reach a commercial resolution with NWF including commissioning an independent expert re view of the TRH turbine design differences compared to the final design submitted for IEC certification. This review has now been completed. WTL is satisfied that it does not disclose any major issues and has offered the report to NWF.

Despite the efforts made to reach a commercial resolution, NWF has continued to withhold payments due to WTL, and as a result the amount owed is now in excess of $3.5 million. If NWF continues to withhold payment then WTL will need to take steps to conserve its remaining cash until NWF resumes payment. WTL has initiated a legal process to recover amounts owing to it by NWF and this will shortly result in a High Court hearing unless NWF makes the required payment.

WTL has today sought a waiver from NZX from Listing Rule 10.5.1, which requires that its Annual Report be delivered to NZX and sent to shareholders by today. WTL has delayed its Annual Meeting date until 16 December, and accordingly is seeking to delay delivering its Annual Report until 16 November (20 working days beforehand) because it expects further developments on this matter before then.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO: