Windflow drops court action on Windfarms payment
Windflow drops court action on Windfarms part-payment
Nov 18 (BusinessWire) - Wind turbine manufacturer Windflow Technology Ltd has discontinued court action against its sole customer, New Zealand Windfarms Ltd, following a $1.8 million part payment for outstanding invoices, Windflow advised the NZX today.
Windfarms has been withholding payments to Windflow as it contests the lack of International Electrification Commission certification for the Christchurch company's pioneering two-bladed turbines.
Windflow contends that its turbines are performing to expectations and is confident IEC certification will be received in due course. Windfarms' claims also relate to the fact that some of its turbines differ from the model that is subject to certification, although Windflow contends this is having no impact on turbine performance.
Windfarms also warned in August that there was fundamental uncertainty as to whether it could continue to trade, and has not yet updated on that announcement.
Windflow and Windfarms are continuing efforts to resolve the outstanding contractual issues, including the remaining sum outstanding," said Windflow's managing director, Geoff Henderson.
Windflow had warned that continued non-payment by Windfarms could require Windflow to conserve its cash.
NZAX-listed Windflow shares remained untraded at $1.20 immediately after the announcement, while Windfarms shares changed hands unchanged at 40 cents a share.