41/2015: Receipt of a petition to call for a conciliation hearing filed by KGHM Polska Miedź SA.
The Management Board of PBG S.A. w upadłości układowej (in company voluntary arrangement) (the “Company”, “PBG”) announces that on October 6th 2015 the Company received from the District Court for Poznań-Stare Miasto in Poznań, 9th Commercial Division, a copy of the petition to call for a conciliation hearing (“Petition”), dated August 14th 2015, filed by KGHM Polska Miedź S.A. (“KGHM”) in connection with the contract of July 30th 2010 for the delivery, installation and commissioning of four heat recovery steam generators (“Contract”), implemented as part of KGHM’s project for the construction of CCGT units in Głogów and Polkowice (“Project”).
The Management Board announces that the value of the Contract performed by PBG was set in the contract with KGHM at PLN 23,550,000.00 and EUR 11,600,000.00, i.e. at approximately PLN 72m in total, translated as at the date of the Contract. The Contract for the delivery, installation and commissioning of equipment was part of the larger Project, which involved other parties engaged by KGHM. The CCGT units in Polkowice and Głogów were both placed in use by KGHM.
The petition to call for a conciliation hearing filed by KGHM concerns the payment by PBG of PLN 357,371,250.00 and EUR 176,030,000.00 in total contractual penalties charged for delays in rectifying or failure to rectify the defects discovered during the final technical acceptance testing.
The Management Board would like to note that it does not agree with the Employer’s position in the dispute or the reasons for charging the contractual penalties.