Orchid Developments Group Ltd Court award against Orchid Sofia Hills Ltd (2939L)
03 Settembre 2012 - 8:00AM
UK Regulatory
TIDMOCH
RNS Number : 2939L
Orchid Developments Group Ltd
03 September 2012
3 September 2012
Orchid Developments Group Ltd.
("Orchid" or the "Group")
Court award against Orchid Sofia Hills Ltd and update re
financial position
Orchid (AIM: OCH), the Bulgarian focused property developer and
investor, announces a court award against Orchid Sofia Hills Ltd
and update of its financial position. As reported in the Group's
interim results for the period ended 30 June 2011 (released on 30
September 2011) there were two court cases pending in Sofia City
court between Consortium Remi Group JCS (the general building
contractor for the Group's Orchid Hills development in Sofia) and
Orchid Sofia Hills Ltd.
In the first court case, the court found in favour of Orchid
Sofia Hills Ltd in relation to the retention of EUR186,000 by
Orchid Sofia Hills Ltd as a deduction for low quality execution of
works by Consortium Remi Group JCS, which was claiming
EUR197,710.
In the second court case, Consortium Remi Group JCS had made
claims relating to a delay of 58 days in the payment of 4 invoices
by Orchid Sofia Hills Ltd to Consortium Remi Group JCS. The amount
claimed was for the interest relating to the delay in payment of
the invoices. The Sofia City court found in favour of Consortium
Remi Group JCS and awarded an amount of EUR213,000, of which
EUR36,211 was seized from the bank accounts of Orchid Sofia Hills
Ltd in July 2011 (as previously announced).
The Board has since learned that the Sofia City court has
allowed Consortium Remi Group JCS to appoint a new bailiff in
relation to the outstanding claim. This bailiff has taken
possession of the remaining 12 apartments held for sale in Orchid
Sofia Hills and is preparing to sell these at public auction to
satisfy the outstanding court award.
Orchid Sofia Hills Ltd is a ring-fenced subsidiary of the Group,
however, the 12 seized apartments can no longer be expected to be
sold for the benefit of the Group.
As announced on 16 August 2012, the Directors believe that the
Group will not be able to continue to operate, taking into account
its current cashflows, unless additional capital is raised. The
Board is continuing to evaluate the best manner in which to address
its immediate working capital needs. A further announcement will be
made in due course.
Ends
Contacts:
Orchid Developments www.orchid-dev.com
Guy Meyohas +41 798 200 200
Shore Capital and Corporate
Limited
Bidhi Bhoma / Toby Gibbs +44 20 7408 4090
MHP Communications
Reg Hoare / Tim McCall
/ Vicky Watkins +44 20 3128 8100
Notes to Editors:
Orchid Developments Group Ltd (OCH.L), which listed on the AIM
market in June 2005, was established with the aim of generating
value for shareholders by investing in real estate and leisure
business opportunities initially in Bulgaria.
The company is active in all principal sub-sectors of the
Bulgarian real estate and leisure markets and currently holds three
residential and six commercial property developments in Sofia and
Varna. Its principal investment is Grand Mall Varna, one of
Bulgaria's leading shopping malls.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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