49/2015: Notice from the Court Supervisor concerning 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 November 20th 2015 the Company received a notice from the Court Supervisor of receipt by the Court Supervisor from the District Court for Poznań Stare Miasto in Poznań, 9th Commercial Division, of a copy of the petition to call PBG for a conciliation hearing, dated August 14th 2015 (“Petition”). The Petition was filed by KGHM Polska Miedź S.A. (“KGHM”) in connection with the contract of July 9th 2010 for the manufacture, delivery, installation and commissioning of four complete Gas Turbine Generator Sets (“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 price of the Contract performed by PBG, as agreed with KGHM, was PLN 95,100,000.00. The Contract was part of the larger Project, which involved other parties engaged by KGHM (as in the case of the Contract under which KGHM called the Company for a conciliation hearing, as reported in Current Report No. 41/2015 of October 7th 2015). The CCGT units in Polkowice and Głogów, for which the Turbine Generator Sets were delivered, 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 526,283,400.00 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, the reasons for charging the contractual penalties and with the amount of the penalties in particular, given that the relevant agreement contains a provision limiting the amount of contractual penalties to 10% of the contract price.