Tallinn Circuit Court decided on 08 January 2016 regarding Tivoli Arendus OÜ’s, a company belonging to Arco Vara AS group, appeal in the civil matter „Action of Nordecon AS against Tivoli Arendus OÜ regarding the establishment of termination of the agreement, claiming the debt with the late interest and the return of the guarantee, and the counterclaim of Tivoli Arendus OÜ against Nordecon AS claiming for the contractual penalty and late interest, and alternatively compensation for damage and late interest.“
The court decided not to change the Harju County Court’s decision as of 23 April 2015 and not to accept the appeal.
Tallinn Circuit Court has decided as follows:
- the agreement has been terminated lawfully by Nordecon AS by withdrawing from the agreement;
- Tivoli Arendus OÜ is required to return to Nordecon AS the bank guarantee granted by the latter as a security with respect of the construction agreement;
- Tivoli Arendus OÜ is obliged to pay the debt and the late interest in favor of Nordecon AS in the total approximate amount of 182 thousand euros;
- the counterclaim submitted by Tivoli Arendus OÜ has been fully rejected.
Tivoli Arendus OÜ has the possibility to file a cassation on 08 February 2016 at the latest.
Previous related announcements:
22 May 2012 - Construction contract (Tivoli residential development)
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=507185&messageId=622519
5 February 2013 - Comments on Arco Vara AS announcement (4 February 2013) regarding the termination of Tivoli residential development contract
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=540034&messageId=665156
13 June 2013 - Termination of construction contract (Tivoli residential development)
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=561511&messageId=693117
2 October 2013 - Comments on Arco Vara AS announcement (30 September 2013) regarding the claim made against Nordecon AS
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=575169&messageId=710796
05 May 2015 - Court decision regarding dispute with Tivoli Arendus OÜ
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=658721&messageId=819648
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 consolidated revenue of the Group in 2014 was 161 million euros and net profit 2.3 million euros. Currently Nordecon Group employs close to 700 people. Since 18 May 2006 the company's shares have been quoted in the main list of the NASDAQ OMX Tallinn Stock Exchange.
Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
Email: andri.hobemagi@nordecon.com
www.nordecon.com