84/2013 - Information on default notice

With reference to current report no. 61/2013 of 21 June 2013, the Management Board of Trakcja S.A.  ("Company") hereby informs that on 24 October 2013 the Company sent via Poczta Polska S.A. a final default notice to PKP Polskie Linie Kolejowe S.A. located in Warsaw ("Default Notice") for the amount of: PLN 95,297,116.95 (say: ninety-five million two hundred ninety-seven thousand one hundred sixteen 95/100) along with interest calculated from the maturity date. The Default Notice was sent to PKP Polskie Linie Kolejowe S.A. with respect to default payment of the liquidated damages due to the Company, as the Contracting Party failed to make the construction site available on time pursuant to the agreement  for construction works for comprehensive modernisation of train station and routes in the area of LCS Działdowo under POIiŚ 7.1-41 project, which was concluded on 31 May 2010; "Modernisation of railway line E-65/C-E 65 on the section Warsaw - Gdynia - LCS Działdowo" ("Agreement"). The Company informed about the conclusion of the above-mentioned Agreement in current report no. 9/2010 of 31 May 2010.

The Company called the Contracting Party for payment of PLN 95,297,116.95 due to delay in payment of the aforesaid liquidated damages by the debtor.

The legal basis for the Default Notice is Article 476 of the Civil Code regarding delay in payment of the due amount by the debtor and other provisions of the Civil Code. The deadline for payment of the above-mentioned amount which was indicated in the Default Notice is 7 days from the date of receipt of the Default Notice by the debtor, i.e.PKP Polskie Linie Kolejowe S.A..

The settlement proceedings as mentioned by the Company in report no. 61/2013 of 21 June 2013 are still pending. 

In the opinion of the Company, the Default Notice sent to PKP Polskie Linie Kolejowe S.A. is fully justified.

The value of the object of the proceedings exceeds 10% of the Company's equities.

Legal basis:§ 5 sec. 1 point 8 of the 19 February 2009 Resolution of the Minister of Finance regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.