Brief: Tauron and Rafako Agree On Terms Of Settlement Regarding Jaworzno 910 MW Project

Mostostal Warszawa SA

21/03/2023 07:08

March 21 (Reuters) - Tauron Polska Energia SA  TPE.WA :
    * SAID ON TUESDAY THAT TAURON WYTWARZANIE (TW), RAFAKO,
MOSTOSTAL
WARSZAWA (MW) AND E003B7 HAVE SIGNED ASSUMPTIONS FOR SETTLEMENT
    * UNDER SETTLEMENT PARTIES TO DETERMINE THE MANNER OF
FINALISING
CONTRACT FOR CONSTRUCTION OF 910 MW UNIT IN JAWORZNO
    * UNDER SIGNED ASSUMPTIONS FOR SETTLEMENT TW TO LIMIT ITS
CLAIMS
AGAINST RAFAKO, MW AND E003B7 TO 240.0 MILLION ZLOTYS 
    * SAID AMOUNT TO BE SATISFIED BY DRAWING FROM PERFORMANCE
GUARANTEE OF CONTRACT GRANTED AT REQUEST OF E003B7 AND WHICH
AMOUNT WILL BE PAID BY GUARANTORS
    * THIS ARRANGEMENT DOES NOT IMPLY RECOGNITION BY RAFAKO, MW
AND
E003B7 OF TW'S CLAIMS
    * TW TO PAY RAFAKO AND E003B7 ON THE DAY OF SIGNING THE
SETTLEMENT
AMOUNT OF 32.6 MILLION ZLOTYS RESULTING FROM TAKING INVENTORY
    * AFTER CONCLUSION OF SETTLEMENT WITH UNIQA, TW TO PAY
RAFAKO AND
E003B7 8.5 MILLION ZLOTYS FROM THE COMPENSATION THAT TW WILL
OBTAIN FROM UNIQA
    * TW ALSO TO PAY ON DATE OF COMING INTO FORCE OF THE
SETTLEMENT
14.0 MILLION ZLOTYS FOR AMONG OTHERS WORKSHOP DOCUMENTATION AND
ADDITIONAL NON-CONTRACTUAL PARTS
    * TW ALSO TO PAY ON DATE OF COMING INTO FORCE OF THE
SETTLEMENT,
AMOUNT OF 10.0 MILLION ZLOTYS AS EXEMPTION OF TW BY RAFAKO FROM
LIABILITY FOR CLAIMS OF ALL SUBCONTRACTORS RAFAKO AND E003B7 AND
FURTHER SUBCONTRACTORS
    * ON THE DAY OF SIGNING THE SETTLEMENT, RAFAKO AND E003B7 TO
RELEASE ALL SUBCONTRACTORS FROM ANY OBLIGATIONS THAT PREVENT
THEM FROM COOPERATING WITH TW 
    * ON THE DATE OF ENTRY INTO FORCE OF THE SETTLEMENT, TW TO
RELEASE
RAFAKO, MW AND E003B7 FROM OBLIGATIONS ARISING FROM TECHNICAL
GUARANTEES
    * ON SAID DATE PARTIES ALSO TO WAIVE ALL CLAIMS AGAINST EACH
OTHER
BEYOND THOSE COVERED BY THE SETTLEMENT
    * PARTIES ALSO TO CONCLUDE ANOTHER ANNEX TO THE AGREEMENT
CONCLUDED BETWEEN THEM ON FEBRUARY 7, UNDER WHICH DEADLINES FOR
STANDSTILL ARRANGEMENTS WILL BE EXTENDED UNTIL APRIL 28
    * CONDITIONS PRECEDENT ON PART OF RAFAKO IS CONCLUSION OF
AGREEMENT WITH GUARANTORS ON IMMEDIATE PAYMENT OF 240.0 MILLION
ZLOTYS TO TW BY APRIL 24
    * ANOTHER CONDITION PRECEDENT ON PART OF RAFAKO IS ADOPTION
BY
RAFAKO GENERAL MEETING BY APRIL 24 RESOLUTION ON INCREASE OF
RAFAKO'S SHARE CAPITAL
    * ANOTHER CONDITION PRECEDENT ON PART OF RAFAKO IS
SUBMISSION BY
APRIL 24 BY MS GALLEON DECLARATION OF FURTHER INTEREST IN
CONTINUING RAFAKO INVESTOR PROCESS
    * ANOTHER CONDITION PRECEDENT ON PART OF RAFAKO IS
CONCLUSION BY
APRIL 24 SETTLEMENT WITH IGNITIS GRUPĖ AB OR ITS SUBSIDIARY
REGARDING THE VILNIUS PROJECT

        
 Source text for Eikon:  urn:newsml:reuters.com:*:nEMyhM61a
 Further company coverage:  TPE.WA  

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))