Current report no. [31/2016]
Date of drawing-up the report: 06/09/2016
Time of publication: 15:45
Abbreviated name of issuer: CIECH S.A.
Subject: Approval of the new financial terms for the supply of steam to a subsidiary
Legal basis: Art. 17 section 1 of MAR - confidential information
Text of the report:
The Management Board of CIECH S.A. with its registered office in Warsaw (the “Issuer” or the “Company”) hereby informs that today, the Ramnicu Valcea Tribunal, Romania (court of 1st instance), issued a non-final decision to dismiss the claim submitted by a subsidiary of the Issuer - CIECH Soda Romania S.A. based in Romania (“CSR”) against S.C. CET Govora S.A. in composition bankruptcy based in Romania (“CET”), for declaring the termination of the agreement for the supply of process steam, filed by the court-appointed administrator of CET, void and ineffective.
This decision entails that the injunction relief obtained by CSR - in the form of suspension of legal effects of the termination of the agreement for the supply of process steam – has been cancelled. The Issuer posted information on the aforementioned ruling, suspending the legal effects of the termination of the agreement for the supply of steam, in its current report no. 28/2016 of 18.08.2016.
At the same time, the Issuer informs that today, following many weeks of negotiations, CSR and CET approved the new financial conditions for the supply of steam to CSR, which are a compromise between the expectations of CET and the financial possibilities of CSR. The new price of process steam agreed between the parties is higher, by 16%, from the price specified in the terminated agreement. Steam will be supplied under the new conditions as of today, from 12:30 p.m. (Romanian time). The parties intend to sign the agreement for the supply of process steam in the coming days.
The Issuer posted information on the aforementioned termination of the agreement for the supply of process steam, the legal measures taken and the negotiations conducted with the court-appointed administrator of CET in its current reports nos. 24/2016 of 06.07.2016, 25/2016 of 28.07.2016, 26/2016 of 03.08.2016, and 28/2016 of 18.08.2016.
Legal basis: article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1) (the “MAR”).
Signatures of the Company's representatives:
Maciej Tybura – President of the Management Board
Artur Król – Member of the Management Board
