There was bad news all round for Danish wind turbine manufacturer, Vestas this week.
The Danish government’s energy minister, Martin Liddegard said they would not support the company through financial hardship, while in Argentina a judge ruled that Vestas (OMX: VWS) must continue to supply services to Genneia, who have had difficulty in making payments to them.
Mr Lidegaard was emphatic about the Danish government’s refusal to get involved if the world’s biggest wind turbine manufacturer needed a bail out, saying, “We cannot and will not support a single company. It is against the government’s general state aid policy.”
The company is struggling to stay competitive as it faces declining demand in Europe and the U.S and would consider selling about EUR500m in shares to existing investors if talks on a strategic cooperation with Mitsubishi Heavy Industries Ltd. (7011) fail, said two people with knowledge of the matter last month, reported Bloomberg.
Meanwhile an Argentine judge issued an injunction against Vestas, ordering it to keep providing services to local energy company Genneia SA.
Vestas will have to continue fulfilling services contracted by Genneia for a wind park, Genneia said in a note sent to the market regulator.
Genneia hasn’t been able to pay a $19.8M service fee in dollars because of Argentina’s obstacles to acquire foreign currency, Genneia said, citing a ruling issued by a federal judge.
Genneia added in its three-page filing that it offered to Vestas to cancel its dollar-denominated debt by using pesos and also filed a petition with the Argentine Central Bank to receive authorization to acquire the dollars. The request hasn’t yet been answered.
For more wind power news