|
Friday, 8 July 2005
+++ Settlement Agreement INTRACOM COSMOROM +++
We wish to inform you that the Settlement Agreement
entered into on 27 May 2005 by "Intracom S.A., Hellenic Telecommunications
and Electronics Industry" ("Intracom"), acting on its behalf
as well as for its Romanian subsidiary Intrarom S.A. ("Intrarom")
and Ericsson AB ("Ericsson"), on the one part, and Cosmorom
S.A. ("Cosmorom"), Romtelecom S.A. ("Romtelecom"),
OTE SA ("OTE") and OTE International Investments Ltd. ("OTEI"),
on the other part (the "Settlement Agreement"), has entered
into force on 7 July 2005. Pursuant to the Settlement Agreement, the foregoing
entities have agreed fully and finally to settle all claims, counterclaims,
liabilities, causes of action, suits, damages and expenses asserted against
or by Cosmorom, Romtelecom, OTEI, and OTE, arising out of a Supply Contract
dated 30 July 1999 by and between Intracom, Intrarom and Ericsson AB on
the one part, and Cosmorom for the provision of network infrastructure
equipment and related services.
In consequence of the aforesaid agreement, Intracom
and Intrarom have further agreed to withdraw the ICC arbitration they
commenced on 28 November 2003 against Cosmorom, Romtelecom, OTEI and OTE,
and Cosmorom has agreed to withdraw the counterclaim it has raised in
the context of that arbitration against Intracom, Intrarom and Ericsson.
The settlement reached is without admission as to liability
on the part of Romtelecom or any other Party for the alleged obligations
of Cosmorom.
Pursuant to the terms of the Settlement Agreement, Intracom
and Intrarom will receive € 78.2 million (seventy eight million
two hundred thousand Euro) in three instalments (27.6 million, 27.6 million
and 23 million Euro respectively), the first one having been already paid
on 8 July 2005 and the two remaining to be paid on 7 July 2006 and 7 July
2007 respectively. In addition, under the settlement, Ericsson will receive
€ 6.8 million (six million eight hundred thousand Euro) to be paid
in three instalments on the same dates in amounts of 2.4 million, 2.4
million and 2 million Euro respectively.
The payment of the second and third instalments is secured
by two unconditional and irrevocable first demand bank guarantees.
|
|
|
