![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Bulgarian Prop. | LSE:BPD | London | Ordinary Share | GB00B058TT05 | ORD 25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 16.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number : 8431J Bulgarian Property DevelopmentsPLC 10 December 2008 FOR RELEASE 07.00 10th December 2008 BULGARIAN PROPERTY DEVELOPMENTS PLC ("BPD") BPD entitled to EUR3.9 million penalty after Fairplay fails to complete purchase of BPD's 50% stake in Varna Logistics AD. BPD is resisting Fairplay's efforts to reclaim the penalty BPD announced on 1st July 2008 that it had exchanged contracts for the sale of its 50% stake in Varna Logistics AD ("Varna Logistics") to Fairplay for EUR15,000,000. At the same time it announced that it had purchased Fairplay's 50% stakes in Trakia Retail Centre and Sandanski Retail Centre for a total price of EUR3.9 million (EUR3 million for Trakia Retail Centre and EUR0.9 million for Sandanski Retail Centre). The consideration for these shareholdings was not paid in cash but was deemed to be an advance payment by Fairplay to be offset against the amount that Fairplay was due to pay on completion of its purchase of BPD's 50% shareholding in Varna Logistics. On 28th October 2008, BPD announced the completion of the sale on 27th October 2008 of the land owned by Trakia Retail Centre. The consideration was EUR6 million, EUR3 million of which has, since completion, been held in a notary escrow account as a performance guarantee for the completion by BPD of the sale of its 50% shareholding in Varna Logistics to Fairplay. Fairplay has failed to complete the purchase of BPD's stake in Varna Logistics. Under the terms of the contract the transfers of the shares in Trakia Retail Centre and Sandanski Retail Centre were irrevocable and, even though Fairplay has failed to complete the purchase of BPD's stake in Varna Logistics, it should not be entitled to reclaim these shares or demand payment for them and the EUR3 million performance guarantee should be released to BPD. Through a notary certified notification Fairplay has informed BPD that it has appealed to the Arbitration Court of the Bulgarian Industrial Association claiming "economic impossibility". The term "economic impossibility" is provided for under the provisions of Article 307 of the Commercial Act of Bulgaria. According to the notification, Fairplay has made two requests to the Court of Arbitration: (i) to rescind the contract and receive back the advance payment of EUR3.9 million or (ii) to amend the contract price to EUR9.3 million (this price would include the EUR3.9 million payment already paid). BPD has not yet received the full text of Fairplay's submission to the Arbitration Court. In order to secure its claim to recover the advance payment of EUR3.9 million, Fairplay has served a disposal injunction preventing the release to BPD of the EUR3 million currently held in the notary escrow account as a performance guarantee. The advice that BPD has received is that Article 307 was intended to be used in the case of war or of very deep economic crisis which the parties could not foresee and could not have foreseen. To the best of our knowledge no successful action has yet been brought under the terms of Article 307. In fact, were Fairplay's action to succeed, a precedent could be set where all current contracts in Bulgaria could be challenged and terminated by the courts, leading to economic chaos. BPD intends to resist this claim vigorously and will take all necessary actions to answer Fairplay's contentious claims, including, if appropriate, seeking damages from Fairplay. Assuming that Fairplay's claim is rejected with no further adverse consequences to Fairplay or BPD, the net effect would be that: * BPD will retain a 50% shareholding in Varna Logistics * BPD will have received Fairplay's 50% shareholding in Sandanski Retail Centre at no cost to BPD (other than transaction costs) and will own 100% of Sandanski Retail Centre * BPD will have received Fairplay's 50% shareholding in Trakia Retail Centre at no cost to BPD (other than transaction costs) and sold it for EUR3 million. Ivo Hesmondhalgh, Joint Chief Executive, commented: "Despite a clear contractual obligation on Fairplay's part, they are trying to avoid their responsibilities under the contract. We will take whatever measures are necessary to enforce their obligations and resist their claims. Whilst we would have preferred to have completed the sale of our 50% stake in Varna Logistics on the agreed terms, we are, nevertheless, pleased to retain a 50% stake in Varna Logistics as we continue to believe that the project is a good one. The logistics park is servicing a clearly expressed need for modern warehousing in Bulgaria's second city." Enquiries: Bulgarian Property Developments Ivo Hesmondhalgh (Joint Chief Executive) +44 (0) 20 7243 1336 Philip Pashov (Joint Chief Executive) +359 (0) 963 13 59 Cubitt Consulting Brian Coleman-Smith/James Verstringhe +44 (0) 20 7367 5100 Matrix Corporate Capital LLP (Nominated Adviser) Stephen Mischler +44 (0) 20 3206 7203 Background Note: Since BPD was incorporated in May 2004 and floated on AIM in January 2005, it has raised a total of £62.22 million in equity. This has been used to acquire and develop land for commercial property use across Bulgaria, in particular for building distribution centres, retail centres and offices. BPD's portfolio currently includes properties in Sofia, Varna, Plovdiv, Vidin, Ruse, Bansko, Pleven and Sandanski. http://www.bpdplc.com This information is provided by RNS The company news service from the London Stock Exchange END DISDGMGZRLMGRZM
1 Year Bulgarian Property Developments Chart |
1 Month Bulgarian Property Developments Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions