Aktuální report č. 32 / 2015

Change of the arrangement bankruptcy of PNI Sp. z o.o. to liquidation bankruptcy

With reference to current reports No 73/2011 of 4 August 2011, No 85/2011 of 14 October 2011, No 88/2011 of 7 November 2011, No 90/2011 of 16 November 2011, No 48/2012 of 24 August 2012, No 49/2012 of 24 August 2012, No 58/2012 of 13 September 2012 and No 77/2012 of 4 December 2012 pertaining to the bankruptcy proceedings carried out against Przedsiębiorstwo Napraw Infrastruktury Sp. z o.o. in arrangement bankruptcy with its registered office in Warsaw (“Bankrupt”) – a 100% subsidiary of Budimex SA, the Management Board of Budimex SA would like to inform you that on 29 May 2015, it obtained from Portal Informacyjny Sądów Apelacji Warszawskiej (Information Portal of Warsaw Courts) the information on the decision of 27 May 2015 of the District Court for the Capital City of Warsaw in Warsaw, 10th Commercial Division for bankruptcy and restructuring cases, issued ex officio, in which the Court changed the method of conducting the bankruptcy proceedings from the bankruptcy proceedings with an arrangement option to the bankruptcy proceedings involving liquidation of assets of the Bankrupt.
At the same time, the Court recalled the provisional receiver and appointed the general receiver, Mr Krzysztof Gołąb. The Judge Commissioner is Ms Edyta Dzielińska.
This decision will become final and binding within one week of the date of its delivery to the Bankrupt (it has not been delivered yet), unless a complaint is made within this period. Budimex SA intends making the relevant complaint.
In the justification, the Court stated that it changed the method of carrying out the bankruptcy proceedings due to the fact that in the opinion of the Court the objective of the arrangement proceedings, i.e. satisfaction of creditors in the degree higher than in the proceedings involving liquidation of the debtor’s assets would not be achieved, and that the probability of concluding the arrangement is very low, since the enterprise of the Bankrupt is unable to generate stable revenues exceeding costs, which would allow collecting the funds necessary to satisfy liabilities subject to the arrangement.
The aforementioned decision would have no impact on the consolidated financial statements of the Budimex Group. The accounting impact on the individual financial statements of Budimex SA would be minus PLN 5,054 thousand and would not involve any outflow of cash from Budimex SA. The difference is due to the gain recognised on sale of shares by Budimex SA to Budimex Kolejnictwo SA in 2012. This gain was eliminated as a part of consolidation eliminations in the consolidated financial statements of the Budimex Group.