The Management Board of Trakcja – Tiltra S.A. (“Company” or “Ordering Party”) hereby informs that on 23 April 2012 the Company terminated a material agreement concluded with its subsidiary, Poldim S.A. (“Subcontractor”) with its registered office in Tarnów (conclusion of this agreement was reported with current report no. 57/2011 of 29 July 2011). The termination will be effective at the moment of serving Poldim S.A. with the Company’s termination notice.
Subject Matter of the Agreement:
Under the Agreement, the Subcontractor performed complex professional works (road works), related to No. 9 line modernisation on the section from km 236.920 to km 275.920, covered by the Local Control Center with its registered office in Malbork area, within Project: No. POIiŚ 7.1-1.3 “Modernisation of railway line E 65/CE 65 on section Warsaw – Gdynia – LCS Ilawa, LCS Malbork” along with the drafting of final and as-built designs of the railway signaling equipment, except for design, supply and installation of gates for the signaling devices and supply and installation of devices for repelling animals.
Reasons for the termination:
The reason for the termination is a failure to perform the Agreement by Poldim S.A. and a considerable delay in the performance of works as compared to the schedule.
Envisaged financial results of the termination:
The termination of the Agreement for fault of Poldim S.A. will result in a contractual penalty in an amount of 10% of the gross value of the Agreement imposed on the Subcontractor. Termination of the Agreement will not have any material impact on the financial results of the Company and its related entities.
The value of the Agreement exceeds 10% of the equity of Trakcja – Tiltra S.A. as of the date of the termination.