OREANDA-NEWS. AS Pro Kapital Grupp management board is pleased to announce that it has reached a settlement agreement in the dispute with Dutch company Aprisco B.V. held in Rotterdam court related to the guarantee letter with what AS Pro Kapital Grupp assured 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. The case was initiated in May 2010 and in July 2012 Rotterdam court awarded Aprisco B.V. claim in amount of 1 409 265,2 EUR. The decision was appealed by AS Pro Kapital Grupp in September 2012.

The condition precedents of the settlement agreement was signing the settlement agreement by both parties and timely and full payment of the lump sum of 1 000 000 euro by Pro Kapital.

The settlement agreement was signed and the settlement amount of 1 000 000 euro was paid by AS Pro Kapital Grupp. The amount is final, parties shall have no additional claims against each other (including legal fees).

With the settlement agreement the parties agreed to terminate all litigation connected to the dispute.

Chairman of the Management Board Paolo Michelozzi commented: “reaching settlement in this long lasting dispute and the agreed terms were beneficial for the company as the settlement payment was ca 40% less than the first instance court of Rotterdam awarded Aprisco. We are glad to set this dispute behind us and concentrate on our core activity”.

The settlement shall have a positive impact on the income statement in the amount of 409 000 euro in Q1 as a provision in the amount of 1 409 000 euro was formed in connection with the dispute as of 30.06.2012. The only and final payment to Aprisco amounted to 1 000 000 euro.

The more detailed information about the dispute is available on company's website in the last Interim Report.