ABL Ablon

 

TIDMABL 
 
RNS Number : 4186U 
Ablon Group Limited 
14 October 2010 
 

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| For immediate release        |              14 October 2010 | 
+------------------------------+------------------------------+ 
 
                          ABLON Group Limited ("ABLON") 
 
                   Supreme Court Verdict regarding BVM Epelem 
 
ABLON (AIM: ABL), a leading real estate owner and developer in Central and 
Eastern Europe, announces that on 12 October 2010, the Supreme Court in Hungary 
annulled the verdict made by the Permanent Arbitration Court of the Hungarian 
Chamber of Commerce & Industry on the BVM Epelem ("BVM") case. The Arbitration 
Court initially ruled that the Plaintiff, Global Center LLC (a subsidiary of 
ABLON) be reimbursed HUF 4.98bn as principal, plus interest due of approximately 
HUF 3.00bn (approximately 29m euro in aggregate) to compensate ABLON for the 
illegal delay by BVM in the construction of a factory outlet development project 
in Budapest. 
 
The reason for the Supreme Court's decision was that, in their opinion, a 
relationship existed between an external lecturer of the Plaintiff's Council and 
two judges presiding on the Arbitration Court's Council (who are professors at 
the same University Department), and that this should have been disclosed, 
although the Supreme Court did not find that this oversight had any impact on 
the verdict of the Arbitration Court. The Supreme Court's decision was made 
despite a subsequent judgment by the Metropolitan Court that there was no legal 
basis to disclose this relationship. No other legal error was found in the 
Arbitration Court's verdict. 
 
The Supreme Court did not comment on the Plaintiff's assignment of its damages 
claim to Bright Site (an affiliate of ABLON) although the Supreme Court noticed 
BVM's reaction to the consequences of the assignment. Bright Site was not 
invited into the proceedings by BVM nor did they enter into the proceedings 
voluntarily. It is a basic principle in Hungarian Law that no verdict should 
apply to a third party which did not participate in the proceedings. Therefore, 
it is unclear whether the verdict will have any effect on the legal position of 
Bright Site, which currently owns the material claim for damages. 
 
Commenting on the judgement, Uri Heller, Chief Executive of ABLON said: 
 
"We are disappointed that after ten years of legal debate, this case has not 
concluded satisfactorily in our favour due to an administrative irregularity. In 
view of this outcome, an application will be lodged with the Supreme Court to 
clarify the legal position of Bright Site and an announcement on any further 
developments will be made in due course." 
 
 
 
For further information, please contact: 
ABLON Group Limited 
 Uri Heller / Adrienn Lovro 
Tel. +36 1 225 6600 
 
Religare Capital Markets 
James Pinner / Derek Crowhurst (Nominated Adviser) 
Daniel Briggs (Joint Corporate Broker) 
Tel. +44 (0)20 7444 0500 
 
ING Wholesale Banking 
(Joint Corporate Broker) 
Nathalie Bachich de Recina / Julie Wakkie 
Tel. +44 (0)20 7767 8362 
 
Buchanan Communications 
(Financial PR) 
Tim Thompson / Richard Darby / Christian Goodbody / George Prassas 
Tel. +44 (0)20 7466 5000 
 
 
Notes to Editors 
 
About Ablon Group 
 
Founded in 1993 in Budapest (Hungary), Ablon Group has properties in 34 
locations, of which there are 16 completed projects and 24 development projects 
in Budapest, Prague, Bucharest, Warsaw and Gdansk. Its portfolio comprises a 
diversified mix of office, residential, retail, logistics and hotel developments 
valued at 527 million euro by external independent appraisers (GVA and King 
Sturge) as at 30 June 2010. 
 
Ablon has, as at 30 June 2010, 195,790 square metres of existing and income 
generating office, hotel and retail assets (at 14 locations) in Budapest and 
Prague, with a significant development land bank comprising a further 1,273,230 
square metres (at 24 locations) in Budapest, Prague, Bucharest, Warsaw and 
Gdansk. Ablon's shares are traded on the AIM market of the London Stock Exchange 
under the ticker 'ABL'. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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