47/2015: Receipt of a petition to call for a conciliation hearing filed by Zurich Insurance plc.
The Management Board of PBG S.A. w upadłości układowej (in company voluntary arrangement) (the “Company”, “PBG”) announces that on October 8th 2015 the Company received from the District Court for Poznań-Stare Miasto in Poznań, 10th Commercial Division, a copy of the petition to call for a conciliation hearing (“Petition”), dated June 12th 2015, with the purpose of reaching a settlement that would provide for PBG to pay PLN 152,479,275.28 to Zurich Insurance plc Niederlassung fur Deutschland of Frankfurt, Germany (“Zurich”).
The claim specified by Zurich in the Petition is a recourse claim against PBG arising from the indemnity agreement executed on June 11th 2010 in connection with a performance bond issued by Zurich at the request of PBG and Hydrobudowa Polska S.A. (currently in liquidation bankruptcy) in respect of the contract for construction of the National Stadium in Warsaw for Narodowe Centrum Sportu Sp. z o.o.(NCS).As at the last day of the validity period of the performance bond (July 31st 2012), the maximum guarantee amount was PLN 152,479,275.28. As provided for in the agreement, Zurich, as the Guarantor, may demand payment of the full amount of the performance bond from PBG and Hydrobudowa, as joint and several debtors, should the beneficiary (NCS) make a call for payment under the performance bond.
On July 5th 2012, Zurich received a call for payment under the performance bond issued in respect of the contract for construction of the multi-purpose National Stadium in Warsaw, made by NCS and served through Powszechna Kasa Oszczędności Bank Polski, as reported by the Company in Current Report No. 75/2012 of July 9th 2012. On July 11th 2012, Zurich delivered a notice of refusal to make a payment under the performance bond to NCS (see Current Report 76/2012 of July 12th 2012).
The PBG Management Board does not agree with the grounds on which Zurich is pursuing its claim before a Polish court through settlement. The Company’s position is that the claim pursued by Zurich through settlement is a claim covered by the arrangement scheme and, as such, should be satisfied in accordance with the Arrangement Proposals of April 28th 2015. In addition, as stated by Zurich’s Attorney-In-Fact in the Petition, the agreement which gives rise to Zurich’s claim is governed by German law and the courts having jurisdiction to enforce the rights under the agreement are German courts.