Tallinn, Estonia, 2013-10-02 08:15 CEST (GLOBE NEWSWIRE) -- On 30 September 2013 Arco Vara AS made a company announcement to inform that Tivoli Arendus OÜ (a member of Arco Vara group) has laid a claim against Nordecon AS in sum of approximately 1.9 million euros. The claim arose from design and construction contract signed on 21 May 2012 and which subsequently was terminated by both parties.
As part of the claim Tivoli Arendus OÜ informed Nordecon AS that the failure to settle the claim by 20 September 2013 will result in the realisation of a performance bond of approximately 1.3 million euros that has been given as collateral to the contract by Nordecon AS. Taken into account that Tivoli Arendus OÜ did not present a construction permit during the validity of contract, as of today the land plots under development have been sold and in essence Tivoli Arendus OÜ has stopped the development of the project Nordecon AS in turn took on 13 September 2013 legal action to stop the ill-willed realisation of the bond. On 16 September 2013 Harju County Court issued an ordinance that prohibits the bank who issued the performance bond to make payments to Tivoli Arendus OÜ if a claim is made against Nordecon AS.
Nordecon AS does not recognise the claim presented against it by Tivoli Arendus OÜ. Nordecon AS’ claim against Tivoli Arendus OÜ is approximately 0.2 million euros and consists mainly of unpaid receivables related to construction works performed.
Previous related announcements:
22 May 2012 - Construction contract (Tivoli residential development)
https://newsclient.omxgroup.com/cdsPublic/vie...eId=622519
2 May 2013 - Comments on Arco Vara AS announcement (4 February 2013) regarding the termination of Tivoli residential development contract
https://newsclient.omxgroup.com/cdsPublic/vie...eId=665156
13 June 2013 - Termination of construction contract (Tivoli residential development)
https://newsclient.omxgroup.com/cdsPublic/vie...eId=693117
Nordecon is a group of construction companies whose core business is construction project management and general contracting in the buildings and infrastructures segment. Geographically the Group operates in Estonia, Ukraine and Finland. The parent of the Group is Nordecon AS, a company registered and located in Tallinn, Estonia. In addition to the parent company, there are more than 10 subsidiaries in the Group. The consolidated revenue of the Group in 2012 was 159.4 million euros. Currently Nordecon Group employs more than 700 people. Since 18 May 2006 the company's shares have been quoted in the main list of the NASDAQ OMX Tallinn Stock Exchange.
Raimo Talviste Nordecon AS Head of Finance and Investor Relations Tel: +372 615 4445 Email: raimo.talviste@nordecon.com www.nordecon.com
