OREANDA-NEWS. January 23, 2013. Harju County Court of Republic of Estonia decided on 17.01.2013, to suspend the proceeding of Aprisco B.V. petition for declaration of execution of the Rotterdam court decision of 04.07.2012 in the Republic of Estonia.

The proceedings of the declaration of execution of the mentioned Rotterdam court decision have been suspended until the decision of the Rotterdam court shall be final (in force).

Aprisco B.V. has the right to appeal the Harju County Court decision in 15 days, thus the decision of Harju County Court is not yet in force.

Background and status of the court case:

On 27.05.2010 Aprisco B.V filed a case to Rotterdam court against AS Pro Kapital Grupp related to the guarantee letter with what AS Pro Kapital Grupp assures the rental liabilities of the Serval S.r.l (former Domina Hotel Group Spa, a former group company) arising from the rental agreement of the Rotterdam hotel, concluded on 04.08.2006 between Serval S.r.l and Hotel Blijdorp B.V.

In 2007 Aprisco B.V acquired the hotel that was managed by subsidiary of Serval S.r.l and the rental agreement with Serval S.r.l was transferred to Aprisco B.V.

Serval S.r.l has not fulfilled the rental obligations to Aprisco B.V, therefore Aprisco B.V claims the payments according to the guarantee letter from AS Pro Kapital Grupp.

Aprisco has filed alternative claims to the court. Firstly, Aprisco B.V claims the payment of caused loss in the amount of 2 300 thousand euro or in the amount stated by the court. As an alternative claim, Aprisco B.V claims overdue rental payments in the amount of 904 thousand euro with accumulated interest for default or in the amount of 504 thousand euro with accumulated interest for default.

On 31.08.2011 Aprisco B.V changed its claim and claims the payment of caused loss in the amount of 2 300 thousand euro with accumulated interest for default, or in the amount stated by the court. As an alternative claim, Aprisco B.V claims overdue rental payments in the amount of 1 776 thousand euro with accumulated interest for default or in the amount of 1 409 thousand euro with accumulated interest for default.

On 04.07.2012 Rotterdam court made a decision and awarded Aprisco B.V claim in the amount of 1 409 265,2 EUR to be paid.

The Management Board of AS Pro Kapital Grupp does not agree with the court decision. The Management Board of AS Pro Kapital Grupp does not recognize the claim. AS Pro Kapital Grupp has appealed the decision on 11.09.2012, the appeal is currently pending.

Nevertheless, to keep in line with the Company’s conservative policies, the provision has been formed for the maximum amount of the claim 1 409 thousand euro as of 30.06.2012 so the potential negative outcome of the dispute shall not have a significant impact on AS Pro Kapital Grupp income statement.

On 06.08.2012 Aprisco B.V has filed the petition to the Harju County Court for the recognition and enforcement of the Rotterdam court decision of 04.07.2012. AS Pro Kapital Grupp rejects the application of Aprisco B.V. as the Rotterdam court decision of 04.07.2012 has been appealed and the decision is not in force and final, thus can’t be deemed enforceable in Republic of Estonia in the opinion of AS Pro Kapital Grupp.

Harju County Court of Republic of Estonia decided on 17.01.2013, to suspend the proceeding of Aprisco B.V. petition for declaration of execution of the Rotterdam court decision of 04.07.2012 in the Republic of Estonia.

The proceedings of the declaration of execution of the mentioned Rotterdam court decision have been suspended until the decision of the Rotterdam court shall be final (in force).