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India

India

Vestas takes legal action in India over Nørremark deal

INDIA: Vestas has filed lawsuits against the two Indian companies embroiled in the Danish company's row with former CFO Henrik Nørremark.

Vestas has filed the lawsuits in New Delhi's high court against RRB Energy and ECO RRB for the return of money handed over by Norremark, in deals that were not sanctioned by the Danish company's board.

The lawsuit follows this week's reports that Nørremark had been formally charged following an investigation by the public prosecutor for serious economic and international crime.

Vestas said it is seeking EUR 24 million, which the companies have refused to pay. Additionally, Vestas has sought arbitration through the ICC with RRB.

The EUR 24 million consists of EUR 19 million transferred to the companies by Norremark, with the remainder made up of existing debt.

Vestas said the EUR 18.9 million relates to two orders from 2011. One involved the ending of two debt agreements worth around EUR 4.4 million. The other was a EUR 14.5 million investment with the same companies for a potential project in India. The latter was dubbed 'Project Dragon' and is believed to have involved the acquisition of turbines from China for R&D purposes.

Nørremark had been CFO since 2004. However, at the beginning of the year he was made deputy chief executive. He only held the role for a number of weeks before he left Vestas in February 2012.

Speaking about the latest course of action, Vestas group senior vice president Morten Albæk said: "As stated on earlier occasions, Vestas is determined to reclaim the money which has been transferred to ECO RRB by instruction of Henrik Nørremark without authorisation as well as the debt which was cancelled by Henrik Norremark, inter alia, without there being any business-related explanation to it. Vestas would have preferred that repayment could have taken place without legal steps having to be initiated, but unfortunately that has not been possible."

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