Independent power producer Ipsa on Wednesday settled its dispute with Turbocare related to the sale and purchase agreements and refurbishment agreement for the Siemens Westinghouse 701DU turbines Ipsa bought in 2007.
In terms of the agreement, Ipsa would pay Turbocare an initial sum of €3-million on or before November 21, with a further €2.6-million in cash or cash equivalent value to be paid by September 30, 2015.
The company noted that the disputed amounts claimed by Turbocare had already been fully provided for in Ipsa’s financial statements.
Ipsa further said it had put security for these sums in place through a charge over a receivable in the amount of £3.2-million still to be paid to Ipsa by 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.
Commenting on the settlement, Ipsa chairperson Richard Linnell said he was delighted that an agreement had been reached and that arbitration had been averted, which allowed management to focus on the operations of the business.