Group Five suffers court setback in its battle with Ghanaian power company Cenpower
Judge rules in favour of Cenpower Generation which is suing over a missed deadline
Group Five’s attempts to stop Ghanaian company Cenpower Generation from calling up its retention and performance bonds suffered a setback on Friday when the Johannesburg High Court dismissed its interdict application. The news sent the company’s share price on a free-fall, down 49% by Friday afternoon. Group Five's share price closed 30% weaker at 70c. In terms of the judgment, Cenpower can proceed with its claim of $62.7m for delays in the execution of a 340MW fuel-fired thermal power station at Kpone, near Tema, 24km east of the capital, Accra.
Earlier in November Group Five went to court to stop Cenpower’s demand for the money from banks HSBC and Standard Chartered. This follows a dispute between the construction company and Cenpower over the power station project. The $410m project was meant to be commissioned in October. Group Five has blamed the missed deadline on faulty fuel from Cenpower. The provision of fuel was Cenpower’s responsibility, according to Group Five. ...