12:38 28.11.2017

Poland demands more than $70 mln from ZAZ for failure to fulfill obligations on FSO

2 min read
Poland demands more than $70 mln from ZAZ for failure to fulfill obligations on FSO

Poland demands about 250 million Polish zlotys (over $70 million at the current exchange rate) from Ukraine's PJSC Zaporizhia Automobile Plant (ZAZ), part of UkrAVTO Corporation, for a failure to fulfill the obligations undertaken with the purchase of a state stake in the Polish automotive plant FSO (Warsaw) in 2005, the Rzeczpospolita newspaper has reported, with reference to Press Secretary of the Polish Prosecutor General's Office Sylwia Hajnrych.

She noted that ZAZ, which actively cooperated with the Polish company at that time, bought 19.3% of its shares from the state for 100 zlotys, which provided it with 84.31% of the votes at a general meeting, under the obligation to save the enterprise from bankruptcy and guarantee preservation of car production and jobs.

According to the newspaper, the Ukrainian investor bought most of the debts of FSO and signed a five-year investment plan with Poland with the commitments to continue production activities, support employment (2,200 people) and increase production (including the launch of a new model).

Rzeczpospolita notes FSO continues to exist, but stopped production of cars at least six years ago, while the investor failed to preserve car production and jobs.

The edition notes the case against ZAZ is to be considered in the district court in Warsaw, however, there is a counterclaim from the Ukrainian investor in court, and the date of hearings has not been determined.

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