Trading in Windflow Technology securities has been suspended by the NZX, as the wind turbine manufacturer continues to seek a resolution to the dispute with its main customer over $3.5 million worth of non-payments.

Last week, Windflow Technology said it was seeking a waiver from the listing rules that required the delivery of the annual report, while it sorted out the issue with its main customer NZ Windfarms.

The company sought a waiver from the listing rule on the grounds that its annual meeting had been delayed until mid-December and Windflow Technology wanted to delay its report until next Monday, as it expected further developments before that date.

But the waiver was not granted, with NZX announcing this morning that Windflow Technologies securities have been suspended from trading, effective immediately.

That suspension will remain until the annual report is produced.

New Zealand Windfarms has withheld payment for turbines at it Te Rere Hau wind farm since August, citing issues related to turbine certification and fitness for purpose.

Windflow Technology is now owed more than $3.5 million and has announced it has launched a legal process to recover the owed amounts, with the company prepared to take its case to the High Court if payment is not forthcoming.

The company said it had “made efforts” to reach a commercial resolution with NWF including commissioning an independent expert review of the turbine design differences compared to the final design submitted for IEC certification.

Windflow Technologies securities were trading at $1.20 when they were frozen, after falling from a height of more than $4 in mid-2008.

It is not a heavily traded security, with just 14 trades so far this month, with a value of $143,000.

In September it announced it had cut its full year loss from $2.04 million to $1.23 million after a tripling in revenue, but was already warning of the major cash flow issues caused by the non-payment.

New Zealand Windfarms announced in August that it was uncertain whether it coyld continue as a going concern, with chief financial officer Garry Forward revealing last week he would resign at the end of January.