Report No 9_Withdrawal of Mostostal Warszawa SA from the agreement

The Management Board of Mostostal Warszawa SA informs that on October 27, the Company, acting on behalf of the consortium composed of: Mostostal Warszawa S.A. - Leader and Acciona Infraestructuras S.A. - Partner (hereinafter "Contractor") withdrew in the unperformed part from the agreement concluded on 19 July 2012 No. JRP/K-1-0/07/2012 (hereinafter "Agreement") with the Przedsiębiorstwo Gospodarki Odpadami Sp. z o.o in Kielce (hereinafter "Employer") for the performance of the project task titled: Design and construction of Waste Disposal Plant for Kielce city and Kielce poviat in Promnik near Kielce", for reasons wholly attributable to the Employer.

 

The Issuer informed about the signature of the Agreement in its current report No. 34/2012 of 20 July 2012.

 

According to the Contractor, the withdrawal from the Agreement is grounded on, among others:  Article 491 § 1 of the Civil Code, Article 649 (4) § 1 of the Civil Code, Article 647 § 1 of the Civil Code in conjunction with Article 640 of the Civil Code in conjunction with Article 656 of the Civil Code, Article 354 § 2 of the Civil Code, Article 493 of the Civil Code and Article 492(1) of the Civil Code.

The factual grounds of the withdrawal were:

 

1.   Failure of the Employer to provide the final building permit decision despite a request for delivery of the above mentioned decision issued by the Contractor,

 

2.   Failure by the Employer to provide a payment guarantee which the Contractor requested according to article 649 (4) § 1 of the Civil Code, in view of the uncertainty as to the possibility of continuation of the works,

 

3.   Failure to settle the receivables for costs incurred by the Contractor due to suspension of works by the Employer.

 

The value of the contract was PLN 275,36 million gross, while the advancement of works as of 30 September 2015 was about 80%.

 

The value of the contract exceeds 10% of the value of sale revenues of the Company for the past four financial quarters.

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