Wind turbidity: Nordex is once again bankrupt

The quarrel between the German company Nordex, the general contractor for the wind farm Hästkullen in Viksjö, and one of their contracted main contractors Active Works escalated properly in early December when Nordex filed for bankruptcy. This was due to a debt of just over SEK 84.4 million for eight unpaid invoices, Active Works claimed in its bankruptcy application to Uppsala District Court.

"Nordex Sverige AB is neither insolvent nor has any financial difficulties at all", was the reply from Nordex who disputed all the invoices.

After a few weeks, Active Works withdrew its bankruptcy application. The company's CEO, Göran Solig, announced that Nordex had demanded that it be withdrawn in order to engage in negotiations.

However, the negotiations between the parties do not seem to have ended well. The bankruptcy application that was withdrawn on Friday, December 20 was filed again the following Monday. Same claims, unpaid invoices of just over SEK 84.4 million.

At the same time, Nordex announces that the subcontractors who have been waiting for their payment since October will receive their money. The message is also a clear mark against Active Works. Nordex is of the opinion that they have tried to make the payments through Active works, but this has not been possible due to the deep conflict between the companies. Instead, payments should now be made directly from Nordex to the subcontractors.

Active Works has a contract with Nordex that corresponds to 80 per cent of the ground and road construction to be completed in the park, it is their subcontractors who are stuck. There are examples of companies waiting for upwards of 30 million in machine and personnel costs, several have left Viksjö.

At the same time, there is information that Nordex contacted other construction companies that may be on their way to Hästkullen to take over the Active Works role in the project. Timothy Carpenter, CEO of Nordex Sweden, did not want to comment on this information more than "the goal is simply to get the project back on track".

The root of the conflict between the two companies is not entirely clear, but it is believed to be a dispute over who is responsible for the environmental shortcomings that led to the construction site being closed by the county administrative board in early October. Since then, the work has been stationary in large parts of the wind farm. The companies have blamed each other for months on this issue.

The project, with a budget of 5.5 billion, is owned by the German energy company RWE and the Swiss major bank Credit Suisse, which formed the project company Nysäter Wind to carry out the construction. The question is how much patience the financiers and the landowner, SCA, have with the tiring parties. The inauguration of the 114 wind turbines is scheduled to take place in 2021.