Airwork loses bid for summary judgment against Skyline Enterprise’s subsidiary
April 4 (BusinessDesk) - Airwork Holdings, 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.
(BusinessDesk)