Clipper Windpower Raises Funds To Cover Concerns

Clipper Windpower (CWP.L), a major U.S.-based wind turbine maker, announced $195 million in funding the company will use to pay penalty charges and cover working capital. 

The funding includes $50 million in new shares to be placed with major shareholders at a price of 537.5 pounds–for 4.7 million new shares.

In addition, the company, which issued a profit warning in 2007 as a result of production problems, will also receive a new $60 million bank-administered credit facility, funded by a customer, and an early payment from another customer for $85 million.

The company owes $8-10 million in penalty charges for weather-related delays in fixing blades on installed turbines. 

Clipper said it also intends to sell some of its 72% stake in Clipper Capital and Generation (CAPGEN. CAPGEN is a joint venture with Spanish Construction and real estate group Hemeretik, valued at approximately $900 million. 

Reportedly, Clipper is on schedule this year with production of its 2.5 megawatts (MW) Liberty turbines, and is continuing development of a 7.5 MW off-shore turbine, which would be the largest turbine to date. 

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