Current report no : 40/2013
Report date : 12/31/2013
Abbreviated name : Ciech SA
Subject : Filing a bankruptcy petition of a subsidiary – Infrastruktura Kapuściska S.A.
Legal basis : Art. 56 sec. 1 point 2 of the Act on Offering – current and periodic information
Report :
CIECH S.A. (hereinafter also referred to as “the Issuer" or “the Company") announces that today (i.e. 31st December 2013) it gained knowledge that the Management Board of the Issuer’s subsidiary - Infrastruktura Kapuściska S.A., with a registered office in Bydgoszcz, KRS 0000160179 (hereinafter "IK S.A.") has filed a bankruptcy petition of IK S.A., which includes liquidation of the debtor’s assets (“Bankruptcy Petition”).
The Bankruptcy Petition was filed on 30th December 2013 with the XV Commercial Department for Bankruptcy and Recovery Proceedings of the District Court in Bydgoszcz.
The Management Board of IK S.A. pointed out that the obligation to file the Bankruptcy Petition is required by law and is the result of a permanent loss of financial liquidity by IK S.A., whose sources of income are no longer sufficient to cover the ongoing costs of operation, including outstanding liabilities to regulate flows. The filing of the Bankruptcy Petition aims to ensure the full protection of the rights of creditors IK S.A.
Another factor which had a significant influence on the decision to file the Bankruptcy Petition was the judgment of the District Court in Bydgoszcz (the "Court") which, on 20th December 2013, dismissed the IK S.A.'s claim of termination of its contract with the Spółka Wodna “KAPUŚCISKA” (hereinafter “SWK”). Thus the Court considered as legally binding the obligation of IK S.A. to pay to the SWK a lump-sum fee for sewage collection and treatment, amounting to over PLN 16 million (sixteen million) per annum, despite the fact that production was suspended in December 2012, and therefore there was a significant reduction in the amount of discharged wastewater. Continuation of the contract with SWK under such conditions, will generate a loss to IK S.A. in the amount of around PLN 12 million (twelve million) per year.
In the Issuer's opinion, submitting the Bankruptcy Petition and potential bankruptcy of IK SA will not have a negative impact on the future financial liquidity situation of CIECH S.A., thanks to a lack of need for further financial support for the IK S.A. in the future.
Legal basis: Article 56 section 1 point 2 of the Law of 29 July 2005 on Public Offering and […] on Public Companies, and § 5 section 1 point 24 and § 30 of the Regulation of the Minister of Finance of 19 February 2009 regarding current and periodic information […].
Type of occurrence: § 5 section 1 point 24 of the Regulation of the Minister of Finance of 19 February 2009 regarding current and periodic information […] – submitting a bankruptcy petition concerning the issuer’s subsidiary.
Signatures of the Company’s Representatives : Dariusz Krawczyk – President of the Management Board
