The guaranty arrangements have been approved by the boards of both companies, and formal guaranty agreements between Clipper and UTC are currently being finalized. The amount of warranty support to be provided will be determined on a case-by-case basis for each new customer order.
The Liberty wind turbine warranty support from UTC will provide increased confidence to customers and their project finance institutions that Clipper has the ability and credit strength to fulfill its contractual warranty commitments, the company says.
In December 2009, UTC paid $206 million for new equity in Clipper and a bought a further $64 million in equity from existing shareholders. UTC's total share is 49%.
Clipper and UTC are also entering into a formal intellectual property and technical assistance license agreement. The agreement formalizes the terms and conditions that allow UTC to provide technical assistance and grant rights in UTC intellectual property for use and application in Clipper's business and jointly developed technology.
‘The U.S. wind market remains challenging,’ says Mauricio Quintana, president and CEO of Clipper. ‘Accordingly, the company continues to put tremendous effort into seeking new orders, particularly in selected emerging markets where we believe the best growth opportunities exist for Clipper. ‘The increased UTC support of Clipper's future turbine warranty obligations, along with the technology assistance, further signifies the strength of the relationship between Clipper and UTC, and reinforces UTC's confidence in Clipper's technology and business potential.’
SOURCE: Clipper Windpower