34/2012: Termination of subcontractor agreement by the bankruptcy administrator of Dolnośląskie Surowce Skalne
Further to Current Report No. 35/2011 of May 27th 2011 (available at: http://www.pbg-sa.pl/relacje-inwestorskie/raporty-biezace/35-2011-zawarcie-znaczacej-umowy-podwykonawczej-w-ramach-budowy-autostrady-a-4.html), the PBG Management Board hereby reports that on May 21th 2012 the Company received a notice dated May 18th 2012 from the bankruptcy administrator of Dolnośląskie Surowce Skalne S.A. w upadłości likwidacyjnej (in bankruptcy by liquidation) of termination of the subcontractor agreement dated May 26th 2011, entered into by the Contractor, i.e. the Consortium of HYDROBUDOWA POLSKA S.A. (the leader), SIAC Construction Ltd, PBG S.A. and APRIVIA S.A., and Dolnośląskie Surowce Skalne S.A. as the Subcontractor. The subcontractor agreement provides for execution of compacted base, as well as asphalt base courses and bituminous pavements as part of execution of the project "Construction of A-4 Motorway Tarnów-Rzeszów between the Krzyż and Dębica Pustynia interchanges".
The termination notice was served in connection with:
1) declaration of the Subcontractor's bankruptcy by way of liquidation of the company’s assets;
2) failure to perform, as stated in the notice, all obligations under the contract of May 26th 2011;
3) decision issued by the judge commissioner in charge of the bankruptcy proceedings approving the termination of the subcontractor agreement.
The termination of the contract with the Consortium by the bankruptcy administrator of Dolnośląskie Surowce Skalne S.A. will necessitate settlement by the parties of their mutual obligations in accordance with the Act on Bankruptcy and Recovery. Also, the Consortium has a claim against the Subcontractor on account of the improper performance of the contract by DSS, in particular for contractual penalties of approximately PLN 17.5m, which it intends to enforce against DSS S.A.
Due to the improper performance and termination of the contract by DSS, the Contractor may incur higher than previously expected costs related to the execution of the project, as the Consortium will be required to perform the works provided for in the contract with own resources or subcontract them to other subcontractors on terms different than those agreed in the contract of May 26th 2011.
Legal basis:
Par. 5.1.5 of the Minister of Finance’s Regulation on current and periodic information to be published by issuers of securities, dated February 19th 2009.
Pliki:
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