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RKB: SWATH patrol boats on the type of supply contract amendment.

Spekuliantai.lt | 2009-10-14 | NASDAQ OMX biržų naujienos | perskaitė: 1615
Raktiniai žodžiai: Rigas kugu buvetava, RKB
RKB: SWATH patrol boats on the type of supply contract amendment.

Rigas kugu buvetava Company Announcement 14.10.2009

SWATH patrol boats on the type of supply contract amendment.

On October 14th, 2009 the newspaper ”Business & Baltic” published the ignorant
and untrue article" Kорабли утонули еще на бумаге”. The articles information is
not consistent neither with the Board of JSC "Riga shipyard" nor the
representatives of the Ministry of Defence.
The Board of JSC "Riga shipyard" is calculating the damages gained from from
the "Business & the Baltics' article versions due to the misleading news
publication and defamation.

The Board of JSC "Riga shipyard" informed that on May 21st, 2009 a letter of
the Ministry of Defense Republic of Latvia "On the performance of contractual
obligations" has been received , which asked to consider options on the agreed
price reduction or to offer any other solutions on payment reductions in the
years ahead.
Taking into account the long-term cooperation agreement, the Board of JSC "Riga
shipyard" conducted interviews with a sub-contractor involved in the project as
well as the Ministry of Defense authorized persons, in order to find mutually
beneficial solutions.
At the present moment the alternations to the shipbuilding and supply
agreements as of Decenber 21st, 2007 have been made determing the construction
period to be taken on transfer payments for up to two years by two of the five
patrol boats and which will help to ease state's budget payments until year
2014. An additional agreement on two patrol boats shipbuilding will be
concluded defining that the boats building will be started until June 30th,
2011.

Ship design and construction for full compliance obligations is in accordance
with the contract previously agreed timetable. Currently the design,
preparation of technical documentation and the first hull construction have
been completed for full compliance obligations. During the 49th week of the
year 2009 the laying of the keel of the vessel will be carried out.
The first ship is planned to transfer according to contractual terms. By
modifying the two ships delivery time without changing the total volume of
supply, the company's production costs would not be affected signifacantly and
the company does not intend to bring forward an action for damages against the
State.

However, order substantials price increase would be possible if the country
refuses any custom parts completely. In this case, designing and preparing
project costs are split proportionally among the remaining orders, that also
include that the company has commercial bank guarantees costs, a guarantee to
repay the amount, the subcontractor claims for damages as well as the company
loses prepaid amounts paid to subcontractors.

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