Current report no 49 / 2012

Current report no 49 / 2012 - 24 August 2012 / 00:00

The Management Board of Budimex S.A. hereby announces that it has been notified about the filing of an application for bankruptcy open to composition agreements on 24th August 2012 by Przedsiębiorstwo Napraw Infrastruktury Spółka z ograniczoną odpowiedzia

In relation to current report no. 48/2012 of 24th August 2012, the Management Board of Budimex S.A. hereby announces that it has been decided to adjust selected financial data of the Budimex Group for the 1st half of 2012 published in current report no. 42/2012 of 25th July 2012, i.e. to write down goodwill in the amount of PLN 45,000 thousand. This write-down equally affects the Group’s gross and net profit, and is of a non-monetary character.
At the same time the Management Board of Budimex S.A. made write-downs for the total amount of PLN 145,158 thousand in unconsolidated financial statements. These write-downs include: a write-down on shares held in Przedsiębiorstwo Napraw Infrastruktury Sp. z o.o. (PNI Sp. z o.o. or the “Company”) in the amount of PLN 108,000 thousand (comprising PLN 63,000 thousand due to increase by Budimex S.A. the share capital of PNI Sp. z o.o. and the value of shares held in the Company in the amount of PLN 45,000 thousand remaining after earlier write-downs), write-downs to trade receivables in the amount of PLN 6,440 thousand and a write-down on prepayments for inventory in the amount of PLN 30,718 thousand. They all have a non-monetary character. Having taken into consideration the deferred tax effect for these write-downs, their total impact on the net financial performance of Budimex S.A. for the first half of 2012 is PLN 123,414 thousand.
The decision on write-downs results from filing of an application for bankruptcy open to composition agreements on 24th August 2012 by PNI Sp. z o.o.
Budimex S.A. purchased 100% shares in PNI Sp. z o.o. for the amount of PLN 225,017 thousand pursuant to an agreement of 4th August 2011 entered into with Polskie Koleje Państwowe S.A. – the previous shareholder of the Company, notifying the market in the following reports: report no. 73/2011 of 4th August 2011, report no. 85/2011 of 14th October 2011, report no. 88/2011 of 7th November 2011, report no. 90/2011 of 16th November 2011 and report no. 91/2011 of 16th November 2011. In report no. 35/2012 of 27th June 2012 the Management Board of Budimex S.A. announced a write-down on shares held in PNI Sp. z o.o. in the amount of PLN 182,267 thousand charged to the performance from previous years.
As a result of filing an application for bankruptcy open to composition agreements, the Budimex Group does not lose control over PNI Sp. z o.o.; thus, the current performance of the Company will still be consolidated by the Budimex Group. The estimated impact of further consolidation of PNI Sp. z o.o. on the Group’s gross performance in second half of 2012 is approx. minus PLN 100,000 thousand. The estimated future losses will also be of non-monetary character.