29th Oct 2014 12:43
LONDON (Alliance News) - IPSA Group PLC on Wednesday said it has reached a settlement in its dispute with Turbocare SpA over the amount it owed to the latter under the sale and purchase agreements for turbines it acquired in 2007.
Power company IPSA said it will pay an initial EUR3 million to Turbocare on or before November 21 this year, along with a further EUR2.6 million payment by September 30, 2015.
IPSA said the security for the payments has already been put in place via a charge over a receivable of GBP3.2 million due to be paid to IPSA by Rurelec PLC following its acquisition of two turbines in June last year.
The company said it has fully provided for the amounts owed to Turbocare in its financial statements.
The dispute related to IPSA's purchase of two Siemens Westinghouse 701DU turbines from Turbocare in 2007.
IPSA chairman Richard Linnell welcomed the settlement, noting arbitration had been avoided, allowing the company to focus on its business operations.
IPSA shares were up 20% in early afternoon trade on Wednesday to 3.75 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
IPSA.L