Power companies Windflow Technology and NZ Windfarms have finally ended their long pending tussle as Windflow Technology would receive $1.8m from the NZ based Windfarms after a period of three months. The payment has brought a major relief for Windflow who was set to face a major challenge on cash front.
Earlier, NZ Windfarms, a major customer of Windflow, had raised concerns over the quality and certification of turbines it had received from the Australian power firm for its Te Rere Hau project near Palmerston North. The development turned hostile and NZ Windfarms withheld the payment to the power company.
Windflow Chief Executive Geoff Henderson added that the standoff may take more time to settle completely. He further informed, “The situation is still not completely resolved but we’re working through those issues now with NZ Windfarms and this payment shows we are making real progress.”
Meanwhile, the recent payment has ended legal war between both parties and both firms have decided to resolve all outstanding contractual disputes through a mutually accepted formula.
Shares of Windflow declined 5c to $1.15 at the bourses.