Independent power producer Ipsa has missed a November 21 deadline to pay Ethos Energy Italia – formerly Turbocare – an initial €3-million payment as part of a dispute settlement reached last month in relation to the sale and purchase agreements and refurbishment agreement for Siemens Westinghouse 701DU turbines bought by Ipsa in 2007.
Ipsa said on Monday that the amount remained outstanding but that it was working toward a solution involving bridge funding of the deferred consideration due to Ethos.
In terms of the agreement, which avoided a lengthy arbitration, Ipsa would, following the initial payment, pay Turbocare a further €2.6-million in cash or cash equivalent value by September 30, 2015.
Engineering News Online reported in late October that Ipsa had put security for both sums in place through a charge over a receivable in the amount of £3.2-million still to be paid to Ipsa by power plant developer Rurelec for the balance of two payments due, following Rurelec’s purchase of two 701DU turbines in June last year.
“The company is in discussions for the provision of loan finance to bridge the sum owed by Rurelec. The company will need to raise at least €3-million by November 21 to make the initial cash sum payment to Turbocare to avoid security being called by Turbocare,” Ipsa said at the time.