Current report no 60 / 2012

Current report no 60 / 2012 - 17 September 2012 / 00:00

PNI Sp. z o.o. - withdrawal from the contract by Trakcja Tiltra S.A.

On 17 September 2012 the Management Board of Budimex S.A. was officially informed about the receipt on 13 September 2012 by Przedsiębiorstwo Napraw Infrastruktury Sp. z o.o. (a company wholly owned by Budimex) of a letter notifying that Trakcja Tiltra S.A. had withdrawn from the contract for construction works involving the modernisation of line no. 9 at the section from 236.920 km to 287.700 km covered by the area of the Local Control Centre with its registered office in Malbork, with the net value of PLN 149,749,000, concluded on 22 September 2011 by and between Trakcja-Tiltra S.A. and PNI Sp. z o.o. According to the letter, the reason for withdrawal from the contract was discontinuation of works specified in the contract and the ineffective lapse of the deadline indicated in the statement of 6 September 2012 for the start of performance of these works by PNI. The withdrawal bears the date of 12 September 2012. The estimated value of works performed by PNI until withdrawal from the contract is PLN 28,000,000. The contract provides for a penalty for PNI of PLN 53,436,996.45; however, according to the Management Board of PNI, withdrawal from the contract is unfounded and thus, it would be unjustified to impose the above-mentioned penalty.
Termination of the contract does not imply any financial implications for Budimex SA.
The value of the terminated contract exceeds 10% of the equity of Budimex SA.