Vestas seeks to reclaim EUR 24m in legal fight in India

Jul 29, 2013 - Danish Vestas Wind Systems A/S (CPH:VWS) said Friday it had initiated legal action against Indian firms RRB Energy and ECO RRB, seeking to recover EUR 24 million (USD 32m) under unauthorised deals struck by former CFO Henrik Norremark.

The wind turbine maker aims to recover the funds EUR 19 million in funds transferred by Norremark and nearly EUR 5 million of old unpaid debt from RRB Energy. The two deals are referred to as the Project Dragon.

Vestas has filed two lawsuits with the High Court of New Delhi against the two firms.

In 2011 Norremark acted beyond his authority and struck the deals for the purchase of Chinese turbines in India on behalf of the company without informing the board or the company’s CEO Ditlev Engel. The move did not go through Vestas' contract approval board and led to the company assuming liabilities worth some DKK 130 million (USD 23m/EUR 17.4m) without receiving any turbines.

Vestas said that Norremark would be held personally responsible for the losses resulting from his actions if the due amount is not paid by the Indian companies.

The board of directors of Vestas dismissed Norremark from the position of CFO in October 2012 and handed the case to the Public Prosecutor in December. Last week Denmark’s Public Prosecutor charged with fraud the former chief financial officer.

(EUR 1.0 = USD 1.328)
(DKK 1.0 = USD 0.178/EUR 0.134)

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