The Court of Appeal partially allowed Erbud’s appeal against Bank Millennium. The company estimates the impact with interest at approximately PLN 100 million, Erbud said in a press release.
Erbud announced that the verdict was issued in a case brought by the company against Bank Millennium for payment aimed at compensating the loss, which consisted of amounts taken by the bank from the company’s bank account, lost profits and costs of legal and financial advisors. The value of the dispute / appeal was PLN 71.1 million.
“According to the judgment, the Court of Appeal in Warsaw partially upheld the company’s appeal, ordering the bank to pay to the company the amount of PLN 51,383,600 with statutory interest from December 8, 2010 to December 31, 2015 and statutory interest for delay from 1 January 2016 until the date of payment. The costs of the trial are charged to the company in 29 percent, and the bank in 71 percent. The judgment is final. The impact estimated by the issuer, together with interest, will amount to about PLN 100 million “- it was written.
Erbud recalled that the dispute concerned the conclusion in 2008 of a transaction of currency options to hedge against foreign exchange risk related to contracts denominated in euro, performed by the company. The bank’s proposal resulted from the need reported by the companies to obtain collateral adequate to its situation. According to the company, the product was not optimally suited to its needs. In the fourth quarter of 2008, as a result of a drastic depreciation of the zloty in the PLN / EUR pair, the bank informed Erbud about the negative valuation of the exposure held at that time.
The loss incurred in connection with the conclusion of a transaction of currency options to hedge against the exchange rate risk with respect to contracts denominated in EUR realized by Erbud, was settled in 2008. (PAP Biznes)
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