Management Board of Qumak S.A. informs that as a result of settlement discussions with the aim of ending all legal disputes and a final settlement of claims of the Consortium of companies ELEKTROBUDOWA S.A., QUMAK S.A. and AGAT S.A. (hereafter referred to as the “EQA”) with regard to the construction works performed at the National Stadium together with the accompanying infrastructure in Warsaw, on 11 November 2016 ELEKTROBUDOWA S.A., as a leader of the Consortium of companies, on behalf of: ELEKTROBUDOWA S.A., QUMAK S.A. and AGAT S.A. as well as other parties to the dispute, as a part of a settlement procedure, submitted to a notarial deposit statements concerning renouncement of claims regarding this dispute.
Submitting the above-mentioned documents in a notarial deposit is a final stage of the procedure before a court settlement between the State Treasury with NCSR and Zurich Insurance plc – the guarantor of a performance bond of the investment, as a result of which the EQA claims will be settled. Court proceedings with the aim of a court settlement is planned to take place on 14 November 2016. The latest expected date of entering into the subject settlement is on 31 December 2016.
After signing this settlement under the agreement Qumak S.A. will receive the amount of ca. PLN 7.5 million, which is a significant amount in terms of the Company’s financial results. In 2013 the Company created a write-down for an entire amount of the disputed overdue receivables in this project in the value of PLN 6.4 million.
On the day this court settlement is effective and the payment is made, the statements of renouncement of claims submitted to the deposit on 11 November 2016 will be delivered to the addressees and will have legal effects.
The Company provided the information about the dispute regarding the settlement of the performed construction works in the National Stadium investment in current reports and periodic reports (in the part regarding court proceedings).
MAR Article 17 – confidential information