INFORMATION NOTE

According to the information sent by the lawyers who represented Impact SA in the court on July 8th, 2010 Romconstruct SA claim was admitted.

Even if we don’t have the details this decision was based on, Impact SA, due to the transparency that characterizes it and for the correct information of the investors, clients and business partners, wants to make known the following facts:

1. The Cash and cash equivalents of Impact SA (which were presented to the court as well) are over 10.000.000 lei, way over the amount of 1.363.141 lei claimed by Romconstruct as debt, and the monthly cash in of Impact SA is about 4.000.000 lei. We are very surprised to see that this fact doesn’t seem to be analyzed by the court as long as, according to the insolvency definition Law 85/2006, Impact SA’s patrimony is not in the situation when the cash and cash equivalents of the company to be below the level of the exigible liabilities;
2. The amount of 1.363.142 lei claimed by Romconstruct as payment due by Impact SA makes the object of the judicial dispute in the files no. 190/3/2010, 191/3/2010 and 19/105/2010 from Prahova court – Commercial Department. So, even if the cash and cash equivalents are over the amount claimed, it can not be paid as long as this litigation is ongoing. In addition, we mention that the amount of 1.363.142 lei has to be diminished, because the amount of 283.952,79 lei was considered already as undue payment throughout the decree from May 20th, 2010. This shows that the court already decided that at least part of the claimed amount by Roconstruct SA is not doubtless and exigible;
3. Romconstruct SA owes to Impact SA over 16.000.000 lei (sixteen million lei) as follow:
1. 1.197.486.25 lei represents the value of the materials and services purchased by Romconstruct, Romconstruct being a subcontractor that worked with the materials provided by Impact SA and using other assets provided by Impact SA. Out of the amount mentioned above, the bills of exchange signed by Romconstruct in total amount of 978.017,31 lei are under a forced execution, in the file no. 1416/2009.
2. 14.995.390,73 lei represents penalties for delay of over 200 days in finalizing the construction work by Romconstruct (the file number 39469/3/2008 which is registered at Bucharest Court).

Impact SA wants once again to assure all the investors, clients, and business partners that will fight against this decision of the Court, it will submit the request for appeal, contesting the Court decision, and it will claim the suspension of the decision from the file no. 323/3/2010.

We believe that the court’s solution is at least surprising, considering the fact that Impact SA’s patrimony is not characterized by cash insufficiency for the payment of the exigible liabilities.

In the past two years there were several cases of this kind of ungrounded decisions to open the insolvency procedure against big companies that contested the Court’s decision, and which finally cancelled the solution of the Court.

A simple comparison of the amount claimed by Romconstruct and the cash and cash equivalents position of Impact SA shows that the decision is ungrounded and hostile. If we are analyzing the balance sheet filled to the file from the Court – which shows the payments the company had in the pasts months – results that Impact SA pays to the vendors the amounts of money bigger than the amount claimed by Romconstruct and it is not the case of being in insolvency.

Impact Developer & Contractor SA will provide more information as soon as it will receive the written decision for the file no. 323/3/2010.
                                      
Executive Director, 
Carmen Sandulescu