Turbine maker seeks early pay 

Christchurch turbine maker Windflow Technology may be thrown a lifeline by its former subsidiary NZ Wind Farms.

Windflow is seeking an early payment from its only customer, NZ Wind Farms, to ease the “cash crunch” it faces for the next two or three months.

It is keeping secret how much the payment is and will only say it would see Windflow through to June.

Windflow launched a share purchase plan on September 15 to raise $2.4 million to keep the company solvent until January, when that payment from NZ Windfarms for Te Rere Hau wind farm turbines falls due.

Last week Windflow said it had reassessed that amount and only needed $2 million.

The share purchase plan was due to close on October 3 but the NZX has given Windflow until October 20 to try to raise the money.

In its application for the extension, Windflow hinted at the possibility of an early repayment. It said the extra time would give it the opportunity to raise additional cash by way of private placements, licensing Windflow’s intellectual property or “bringing forward payments currently due after next January”.

NZ Windfarms, no longer a subsidiary, said yesterday the two companies were in discussions on the possibility of early payment to Windflow Technology but no agreement had been reached.

“We’re considering their request and haven’t reached a conclusion on it yet,” NZ Windfarms chief executive Chris Sadler said.

Sadler would not disclose the value of the payment nor precisely when it was due. He would only say the two companies were in discussions.

Windflow is living on borrowed money with founding director and chief executive Geoff Henderson last week providing the company with a loan of $150,000 to see it through until the end of October.

The loan is secured against six of the additional 18 Windflow 500 blades which the company’s wholly-owned subsidiary Wind Blades made in anticipation of Mighty River Power’s proposed Long Gully wind farm before it became clear that Mighty River Power was not proceeding with that project.

Henderson said he was taking the step to signal to shareholders that the company’s intellectual property was worth preserving.

Windflow will hold a special meeting of shareholders shortly after October 20 to decide if they want to continue to support the company, but if it raises enough capital the special meeting may not be needed.

NOISE

NZ Windfarms, owner of Te Rere Hau wind farm in Manawatu, is facing complaints about the noise from its Windflow turbines.

Palmerston North City Council has sought a determination from the Environment Court as to whether the wind farm’s sound levels comply with its consent conditions.

The hearing will be held in December, NZ Windfarms chief executive Chris Sadler said. The company was in the process of a sound level monitoring programme, and although it was aware of complaints about sound levels its monitoring so far indicated it was within its consent conditions.

However, that had not yet been proved in all wind directions, Sadler said. If the company was outside its consent conditions it might have to alter its operations to reduce excess sound.