Extension of validity of the warranty relating to the contract "Construction of the pipeline DN 700 Szczecin-Gdańsk"

On January 16, 2015, the Board of Stalprofil learned about signing by the Insurance Company Euler Hermes SA, at the request of the consortium composed of: ZRUG Zabrze SA and Stalprofil SA, annexes to contracts of guarantee contract to extend the terms of the guarantee proper execution and proper removal of defects of the contract "Construction of the pipeline DN 700 Szczecin-Gdańsk: Phase II Karlino-Koszalin, Stage III Koszalin-Słupsk and Stage IV Słupsk-Wiczlino" granted to OGP Gaz-System SA with its registered office in Warsaw respectively:
- for Stage II and Stage III until 28 February 2015 in claims for non-performance or improper performance of the contract and until 28 February 2018 in terms of warranty claims
- for Stage IV to 14 April 2015 in claims for non-performance or improper performance of the contract and to 14 April 2018 in terms of warranty claims
The total value of the performance guarantee and proper removal of defects has not changed and amounts to 27 537 510.60 PLN and 8 261 253.19 PLN.
At the same time on order of Stalprofil was extended period of validity of advance payment, which PKO Polish Bank SA with its registered seat in Warsaw has granted to the beneficiary - OGP Gaz-System SA.
According to the annexes to the agreements on advance payment guarantees, these guarantees are valid until the date falling 60 days after the date of final acceptance specified in the Contract but not later than the date of June 14, 2015. The total amount of advances for the financing of the contract received by the Consortium Leader - ZRUG Zabrze SA from OGP Gaz-System SA amounted to PLN 51 500 000 (gross).
The term of the above warranty has been extended due to the postponement of the execution of the contract of 10 May 2012 on general realization of investment "Construction of the pipeline DN 700 Szczecin-Gdańsk: Phase II Karlino-Koszalin, Stage III Koszalin-Słupsk and Stage IV Wiczlino-Słupsk. Financial conditions on which the guarantees were granted do not differ from market conditions applicable to such contracts. Contracts on advance payment, which were drawn up in the annexes meet the criterion of a significant agreement because their total value exceeds 10% of the issuer's equity.