Bloomberg News

Argentine Court Orders Vestas to Keep Contract With Genneia

October 26, 2012

An Argentine judge issued an injunction against Vestas Wind Systems A/S (VWS), the world’s biggest maker of wind turbines, ordering it to keep providing services to local energy company Genneia SA.

Vestas Chile Turbinas Eolicas Limitada and Vestas Argentina SA, both subsidiaries of the Copenhagen-based wind turbine maker, will have to continue fulfilling services contracted by Genneia for a wind park, Genneia said in a note sent today to the market regulator.

Vestas will have to continue providing their services even though Genneia hasn’t been able to pay a $19.8 million 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.

To contact the reporter on this story: Pablo Gonzalez in Buenos Aires at pgonzalez49@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net


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