Polish court awarded approx. PLN 100 million in favor of Erbud from Bank Millennium

by   CIJ News iDesk III
2021-11-25   08:50

The Court of Appeal in Warsaw ordered Bank Millennium to pay PLN 51.38 million with statutory interest to Erbud, the company said. The impact with interest, estimated by Erbud, will amount to approximately PLN 100 million.

"The judgment was issued in a lawsuit filed by the company against Bank Millennium SA with its registered office in Warsaw for payment aimed at compensating the loss, which consisted of amounts collected by the Bank from the Company's bank account, lost profits and costs of legal and financial advisors. Value of the subject of the dispute / appeal. was PLN 71,065,496. 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 interest for delay from January 1, 2016 to the date of payment. The costs of the litigation are charged to the company in 29%, and the Bank in 71%. The judgment is final. The impact estimated by the issuer, together with interest, will amount to about PLN 100 million, according to the announcement.

The dispute concerned the conclusion in 2008 of a transaction of currency options to hedge against foreign exchange risk with respect to contracts denominated in EUR, performed by the company.

The bank's proposal resulted from the companies' need to obtain collateral adequate to its situation. According to the company, the product was not optimally suited to the company's needs. In the fourth quarter of 2008, as a result of a drastic depreciation of the zloty on the PLN / EUR pair, the bank informed the company of a negative valuation. the exhibition held at that time, according to the announcement.

Erbud reminds that the loss incurred in connection with the conclusion of the transaction of currency options to hedge against the foreign exchange risk in respect of contracts denominated in EUR realized by the company was settled in the year it was incurred in 2008.

Source: Erbud and ISBnews