Clipper Windpower seeks funding as cash position declines

(ADPnews) - Sep 20, 2010 - UK wind turbine maker Clipper Windpower Plc (LON:CWP) said Monday it was seeking for ways to raise capital, as its cash position dropped to USD 86 million (EUR 66m) at end-August from USD 140 million as of June 30.

The rapid decline was a result of continued cash requirement, such as higher components purchases for turbines for delivery this year, the company said.

Clipper said it was considering public or private equity offerings or working capital credit lines with financial institutions or its biggest shareholder -- United Technologies Corp (NYSE:UTX), or UTC.
In the beginning of the year, Clipper secured a USD-207-million capital injection from UTC, to once again overcome cash difficulties. The agreement limited UTC's shareholding in the firm to 49% by January 2012, but included an option to raise the percentage to 55 for situations like the current one.

The wind power firm will continue its talks with UTC over a possible financial or acquisition deal. Still, if no agreement is reached by September 30, when the company plans to issue its interim report, Clipper said it would include a statement that it may not be able to continue operations as a going concern due to financial uncertainty.

(USD 1 = EUR 0.764)

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