Wind turbine-maker Windflow Technology says it has received $1.8 million of $4.1m in payments that have been witheld by key customer NZ Windfarms.

As a result of the payment, High Court proceedings between the companies had been discontinued, Windflow said today.

Efforts were continuing to resolve outstanding contractual issues, including the remaining sum outstanding.

NZ Windfarms began witholding payments from Windflow in mid-August because of concerns the turbines did not meet supply contract requirements. Windflow maintained the turbines did meet requirements.

Windflow shares were down 5c to $1.15 at mid-afternoon.