In a statement. Redhall said that judgement in the court case brought by Vivergo has found in favour of Redhall, in ruling that Vivergo was in “repudiatory” breach of the contract with Redhall’s subsidiary Redhall Engineering Solutions, and that the contract was unlawfully terminated.
The statement added: “In addition, it was determined that RESL was entitled to an overall extension of time on the contract of 24 days... It is our intention to enter into discussions with Vivergo with the objective of reaching a financial settlement arising from the judgement as soon as possible.”
Redhall said that trading for the year ended September 30, 2013 was broadly in line with market expectations.
In response, a Vivergo spokesman said: “Vivergo Fuels is pleased that the court has decided that Redhall Engineering Solutions was in material breach of contract and that Redhall was responsible for the vast majority of the delays to its works.
“Vivergo is, however, disappointed with the court’s decision that, notwithstanding material breach and delay, Redhall fulfilled its obligations to commence rectifying the delay, with the result that Vivergo did not have grounds to terminate the contract.
“The case, which was heard by the Technology and Construction Court, related to the termination of Redhall’s employment as mechanical and pipework contractor at Vivergo’s Saltend Chemicals Park Site in Hull following significant project delays.”
Hull-based Vivergo said it was continuing to focus on ramping up production at its bio- refinery.