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Current reports

Current report 31/2008

Report concerns:
Withdrawal from a contract

Report’s text:
Acting pursuant to Para. 5 Clause 1 Item 5 of the Regulation of the Minister of Finance of October 19, 2005 concerning current and periodic disclosures made by issuers of securities (Journal of Laws No. 209, item 1744) ("Regulation"), J.W. Construction Holding S.A. with its registered office in Ząbki ("Company") wishes to inform that on June 18, 2008 J.W. Construction S.A. with its registered office in Ząbki, a subsidiary of the Company, ("J.W. Construction") submitted a statement of its withdrawal as of June 18, 2008 from the contract concluded on April 21, 2008 by and between the Company and Prumstav Develop Poland spółka z o.o. w organizacji (in organization) with its registered office in Kłodzko ("Contractor"). The subject-matter of the invoked contract consisted in construction by the Contractor in the capacity of a general contractor of 14 residential multi-family buildings numbered 18 to 31, in four phases, making up the Lewandów II housing estate ("Contract").

The Company informed of the conclusion of the Contract in its Current Report no. 22/2008 dated April 22, 2008. In the same report, the Company informed of conclusion of an arrangement involving the Contractor and J.W. Construction, whereby J.W. Construction assumed all of the Company’s obligations under the Contract as of April 30, 2008, with the consent of the Contractor.

J.W. Construction’s withdrawal from the Contract was due to the Contractor’s default on its obligations, in particular: (a) failure to assure qualified managers and supervisors; (b) failure to assure the required management oversight for the duration of construction work, including one individual with the qualifications and licenses consistent with the Polish construction law; (c) failure to assure the workforce in the number required for timely execution of the work, in the minimum number as defined in the appendix to the Contract; and (d) failure to provide a guarantee of due performance of the Contract.

No financial consequences affecting J.W. Construction, the Company or the Company’s Group are anticipated as a result of J.W. Construction’s withdrawal from the Contract.