Information letter
12th of July 2010
Dear Investors and Collaborators,
All the investors and collaborators are important for us, and as transparency has always been at the forefront of our priorities we would like to keep you abreast of the last piece of news that looks likely to affect in the short run the price at which your investment in Impact SA will trade at.
As you are probably aware, in February a company which used to be one of our sub- contractors during the 2006-2008 period filled in court a legal demand in order to open the insolvency procedure against Impact Developer&Contractor SA. The amount they were claiming was of RON 1.3 million.
As this contractor (Romconstruct SA Ploiesti) have been conducting its works in a very poor manner and broke several provisions of our contract we were forced to enforce the provisions of the contract by issuing invoices for a total amount of RON 1.2 million while introducing in court an action through which, based on our contract, we are asking for a supplementary amount of RON 15 million, action whose term is scheduled for September 2010.
The lawyers representing us in the procedure filled by Romcontruct gave us all the assurances that we have an extremely strong and solid case and our subcontractor demand should not be accepted by the court.
Despite the above and the evidence submitted in court, the judge, according to our lawyers, admitted the demand on Friday and decided the insolvency procedure should be opened against Impact SA. This decision is not a final one and on the very first hour on Monday we will be opening the file contesting the first decision while also asking for the suspension of its application until the court case will be finalised.
We want to assure all or investors, clients and business partners that all the obligation of the company are fulfilled and this decision does not mean the company is entering any bankruptcy procedure, as the cash position of the company is in excess of RON 10 million while the monthly cash income go over RON 4 million show that the money asked by the contractor could be paid if it was a real claim and the money were really owed. However, we will be more than reluctant to settle such a claim considering the only result of such a settlement would be to increase the amount to be recovered by us from Romconstruct to RON 16 Million.
As we did not see yet the decision which was not communicated to us, we cannot give you more details now, but we will keep you informed.
The official communication for the Bucharest Stock Exchange both in Romanian and English will be posted on our website this afternoon.
Please feel free to contact me at carmen.sandulescu@impactsa.ro +40-729100011 and/or Oana Trifu oana.trifu@impactsa.ro +40-7222100121 for any other questions you might have related to the above.
Best Regards,
Carmen Sandulescu
