Pierre83the full $45M is the amount that they have accrued but...

Pierre83

the full $45M is the amount that they have accrued but not yet charged the client.

the reference to the $40M is a subset(on the income statement side) which has been recognised at nil margin.

This is all about how much of the $45 M Wartsila will agree to. I doubt that the full amount will be a writeoff, however before these types of contract grow in size you normally get to put in a change notice or something... so i find it suprising that 3 months after practical completion they are still talking about it.

take a look at what is going on with DCG ... sounds the same, in anycase all the $7.0M from the cap raise is gone...

i hope all works out, but the fact they refer to legal options doesnt fill me with confidence, to me it seems Wartsila already told them thwy dont agree.

they need to put out a more substantive announcement justifying why they are entitled to the full 40M ... to me they are flagging a future potential writeoff.

GLTA