In 21 June 2019, Harju County Court stared the proceedings on the claim filed by
AS Coal Terminal (in bankruptcy) (hereinafter: ?Coal Terminal") and its
bankruptcy trustees in 20 May 2019 against AS Tallinna Sadam (hereinafter:
?Tallinna Sadam") applying for compensation of the market value of the former
coal terminal buildings and equipment plus accrued interest in connection with
the expiration of the right of superficies contracts in Muuga Harbour. The claim
amounts to EUR 22.4 million plus accrued interest.
The bankruptcy of Coal Terminal, a long-term customer of Tallinna Sadam, was
declared on 2 May 2017. As bankruptcy trustees refused to execute commitments
under the right of superficies contracts, the contracts together with the assets
erected on the plots covered by the right of superficies contracts were
transferred back into the possession of Tallinna Sadam. Under the contracts,
Tallinna Sadam has to compensate the value of buildings and equipment that form
an essential part of the rights of superficies, the amount of which cannot be
estimated reliably because the assets are special-purpose assets for which a
regular market does not exist and there are contradictory views both among the
experts and the parties of the dispute on the valuation methods that should be
used. On 6 July 2018, the bankruptcy trustees submitted a claim to Tallinna
Sadam for compensation of EUR 22.4 million for the value of the assets, which
Tallinna Sadam did not admit as such and the bankruptcy trustees then turned to
court.
Several assets transferred back to Tallinna Sadam were sold in 2018 and the
proceeds from the sale of the assets totalled EUR 2.6 million. In connection
with the termination of contracts, Tallinna Sadam has submitted a counter-claim
to Coal Terminal in amount of EUR 11.7 million for compensation of the damages.
The Management Board of Tallinna Sadam is of the opinion that the requests in
the application of the claim are unjustified in this form. The final monetary
impact to Tallinna Sadam from the bankruptcy proceedings of Coal Terminal
depends on the combined effect of the outcomes of several parallel disputes,
which monetary impact cannot be estimated reliably and there is also no
certainty about the timing of the realization of the claims and liabilities.
Thus, the Management Board has not recognised a provision for a possible claim.
Tallinna Sadam will file the response to the application of the claim by the
deadline fixed by the court.
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the
Baltic Sea region, which in 2018 serviced 10.6 million passengers and 20.6
million tons of cargo. In addition to passenger and freight services, Tallinna
Sadam group also operates in shipping business via its subsidiaries - OÜ TS
Laevad provides ferry services between the Estonian mainland and the largest
islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for
icebreaking and construction services in Estonia and offshore projects abroad.
Tallinna Sadam group is also a shareholder of an associate AS Green Marine,
which provides waste management services. According to unaudited financial
results, Tallinna Sadam group's sales in 2018 totaled EUR 130.6 million,
adjusted EBITDA EUR 74.4 million and net profit EUR 24.4 million.
Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
m.zirel@ts.ee (mailto:m.zirel@ts.ee)
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