In June 2012 Nordecon AS began court proceedings in the arbitrary court of Estonian Chamber of Commerce and Industry against Estonian Maritime Museum regarding the claims and surcharges arising from construction contract (signed as the result of public tender) for the reconstruction works at Seaplane Harbour exhibition building in Tallinn. The claims and surcharges at that time amounted to approximately 2.4 million euros and were recognised as such in the financial statements of Nordecon AS as of 31 December 2013.
On 26 February 2014 the arbitrary court decided partially in favor of Nordecon AS. As per ruling Nordecon AS is entitled to claims, surcharges and court expenses compensation in sum of 1.54 million euros. The difference of 0.86 million euros between the accounted claims in financial statements and expected receivable amount will be recognized as a loss in Nordecon AS’ 2013 financial year.
The agreement between Nordecon AS and Estonian Maritime Museum stated that all the disputes will be settled in arbitrary court and its ruling will be final. Nordecon AS uses legal rights to verify whether the ruling is in accordance with laws and other normative documents. Based on that a decision on further actions will be made.
Nordecon is a group of construction companies whose core business is construction project management and general contracting in the buildings and infrastructures segment. Geographically the Group operates in Estonia, Ukraine and Finland. The parent of the Group is Nordecon AS, a company registered and located in Tallinn, Estonia. In addition to the parent company, there are more than 10 subsidiaries in the Group. The unaudited consolidated revenue of the Group in 2013 was 174 million euros. Currently Nordecon Group employs more than 700 people. Since 18 May 2006 the company's shares have been quoted in the main list of the NASDAQ OMX Tallinn Stock Exchange.
Raimo Talviste
Nordecon AS
Head of Finance and Investor Relations
Tel: +372 615 4445
Email: raimo.talviste@nordecon.com
www.nordecon.com