Airwork loses bid for summary judgment against Skyline Enterprise’s subsidiary
Airwork Holdings [NZX: AWK], the aviation services firm which listed last December, has lost its bid for a summary judgment against Skyline Enterprise subsidiary The Helicopter Line over a disputed contract, and will pursue the matter at trial.
The Auckland-based company was seeking a $2.02 million judgment against The Helicopter Line for overdue invoices, interest and costs, something it said had a very high chance of success in its December offer document. The High Court in Invercargill turned down the claim for summary judgment, which required there be no prospect of a valid defence.
"Airwork still considers that it has a very good case despite the fact that it did not succeed at this first stage," it said in a statement. "Airwork will continue to pursue the matter to trial and remains confident of success."
The Helicopter Line refused to fly the eight Airwork helicopters and threatened to end a nine year lease, claiming Airwork breached the contract. Airwork valued the nine-year lease at $17 million in its prospectus, on the assumption there would be no further flying hours.
If Airwork is successful in its claim, it anticipates an increase in 2014 revenue of $2.2 million, and if the parties reach a commercial settlement, it predicts an increase in 2014 revenue of $1.9 million and $939,000 the following year, according to its prospectus.
The shares were unchanged at $2.80, and have increased 1.5 percent this year.