Insolvency procedure was susspended

SC IMPACT DEVELOPER & CONTRACTOR SA (name as IMPACT SA), informs the Bucharest Stock Exchange that the Court decided the suspension of the opening of the insolvency procedure of Impact SA.
Impact SA is represented by Bostina and Asociatii and by the lawyer Traian Briciu, member of SCP Florea Gheorghe & Asociatii.

The suspension of the decision until the irrevocable decision of the litigation is included in the contest expressed by the company against the Commercial Decree nr. 5061 from July 8th 2010. For the contest, the Bucharest Court didn't set up a term in court yet.
The provisional suspension of the Commercial Decree no. 5061 from July 8th 2010 throughout the Bucharest Court decided the opening of the insolvency procedure of Impact SA, means:
- The suspension of all terms established by the syndic judge throughout the decree nr. 5061/2010;
- The termination of the activity of the judicial administrator named by the Court;
- The regaining of the prerogatives by the Management Board of Impact SA, prerogatives that were exercised by the judicial administrator.
Impact SA's shares are suspended until the judgment of the contest expressed by the company against the Commercial Decree nr. 5061 from July 8th 2010 the Bucharest Court decided the opening of the insolvency procedure of Impact SA.

We want to remind you that on July 12th, 2010, Impact Developer & Contractor SA informed the Bucharest Stock Exchange about the admission of the request for the opening of the procedure of insolvency initiated by Romconstruct SA (Ploiesti) with the file no. 323/3/2010.

Impact SA solicited the suspension of the execution of this decree, so, in fact, the suspension of the implementation of the insolvency procedure, taking into consideration that:
1. The cash and cash equivalents accounts of the Impact SA (used as proof in the Court) were over 10.000.000 lei at that moment, much over the amount of 1.363.142 lei demanded by Romconstruct as presumed debt, and the monthly cash in of Impact was of about 4.000.000 lei. This being said, according to the definition of the insolvency from the Law 85/2006, the Impact SA patrimony was not in the situation in which the "cash and cash equivalents to be below the level of contingent liabilities".
2. The amount of 1.363.142 lei demanded by Romconstruct as a presumed debt owed by Impact SA represents the object for the judicial contend in the files no. 190/3/2010, 191/3/2010 and 19/105/2010 which are on trial at the Prahova Court - the Commercial Department. So, even if the cash and cash equivalents of Impact are much over this amount, the presumed liability, could not be paid as long as this is on trial. In addition, the amount of 1.363.142 lei has to be diminished, because the amount of 283.952,79 lei was already considered as undue through the Court Decree from 20/05/2010. This shows that the Court has already been determined that at least part of the amounts demanded by Romconstruct SA are not certain and contingent, and are below the amounts owed by Romconstruct SA to Impact SA;
3. Romconstruct SA is a subcontractor that collaborated with Impact SA in the past. Impact SA rescinded the contracts due to the fact that Romconstruct SA have been conducting its works in a very poor manner and broke several provisions of our contract, including here the repeated delays totaling over 200 days, which led to material damages and image damages in Impact SA's relationship with its clients. Romconstruct SA owes to Impact SA over 16.000.000 lei (sixteen million lei) as follow:
a. 1.197.486,25 lei represents the value of the materials and services purchased by Romconstruct, being a subcontractor that worked with the materials provided by Impact and using other assets provided by Impact SA. 978.017,31 lei of the amount mentioned above are in the process of enforcement of the checks issued by Romconstruct in the file no. 1416/2009;
b. 14.995.391,73 lei represents the penalties for over 200 days delay in finalizing the construction works by Romconstruct (the file no. 39469/3/2008, on trial at Bucharest Court).

We mention that in the one month period the company was under the judicial administration, Impact SA collaborated with the administrator named by the Court and continued its activity in the normal basis, respected all the obligations in the relationship with its clients, banks, employees and shareholders, and all the obligations of those towards the company.

Executive Director,
Carmen Sandulescu