About current events JSC Daugavpils Lokomotīvju R

Daugavpils, 2016-12-08 15:49 CET (GLOBE NEWSWIRE) -- About current events JSC Daugavpils Lokomotīvju Remonta Rūpnīca

Taking the information provided previously about the fact that JSC “Daugavpils Lokomotīvju Remonta Rūpnīca” has turned to the government to get support into account, we inform that currently, JSC Daugavpils Lokomotīvju Remonta Rūpnīca conducts negotiations and meetings with the Ministry of Economics, the Ministry of Finance and the Ministry of Transport have been arranged regarding the possible support and activities, which might be implemented. During the negotiations, several possible scenarios have been defined to implement the state support. What concerns the publications in the mass communication media we do inform that the given publications are connected with erroneous interpretation of our request for support. JSC Daugavpils Lokomotīvju Remonta Rūpnīca wishes to receive support for implementation of export guarantees and current assets projects in the form of guarantees, which currently are being implemented through ALTUM as financial support instruments or other similar support instrument. JSC Daugavpils Lokomotīvju Remonta Rūpnīca administration and stockholders understand the current situation and the normative base, as well as understand that as it is stated in the notification direct issue of state guarantees is not applicable in our case.

At this moment, we see a wish of all involved parties to find the solution for this situation and in the short run repeated meetings are planned.

Concerning the application of monetary penalty in the amount of 10% within the bounds of DMU, we explain the following:

Pasažieru Vilciens unilaterally, without recognition of general partnership DMU Vilcieni, applied the maximum penalty according to the contract’s provisions, which was withheld basing on the unilateral clearing. At present, DMU Vilcieni has sent a claim to Pasažieru Vilciens, in which it flatly denies and does not accept notifications on clearing, as well as the grounds for clearing stated in them. The claim has stated that Pasažieru Vilciens notifications are illegal and fail to comply with the factual situation, as well as commercially unethical. DMU Vilcieni believes that there are still rights to demand related to receipt of payment for executed works in full amount, and these rights towards Pasažieru Vilciens in case of necessity will be used by force. DMU Vilcieni believes that Pasažieru Vilciens announced the procurement on diesel train cars modernization, solely following the term of liability fulfillment determined in normative standards that is not discussable in pre-contract negotiations. This term was defined not according to the scope of works to be performed and other conditions important for execution, but according to the rules on acquisition of financing of the European Union. Thus DMU Vilcieni believes that the penalty will be returned fully or partially, considering the issue in a legal manner. Now, members of the general partnership DMU Vilcieni have not yet decided on the possible distribution of penalty; and DLRR has represented the earnings with 10% decrease (according to the maximum amount of penalty). The final decisions and the factual situation will be known only after completion of all initiated legal proceedings.

The administration notifies about the possible land sale issue that the company has sent a letter to the city municipality regarding the fact that it is ready to consider the issue on a possibility to sell a land to city - up to 17 000 m2, in order to implement autonomous functions of the municipality. At this point in time, we cannot inform either about the price or the terms of sale contract conclusion.

Natālija Petrova

Member of the Board

t. 65404420, petrova@dlrz.lv