The Management Board of Orzeł Biały S.A. (“The Company”) announces that on 10.05.2018, by virtue of the Resolution No. 37/2018, it decided to intend to recognise write-offs which will have a material effect on the separate financial result of Orzeł Biały S.A. for the first quarter of 2018.
In the course of data aggregation and the impairment test, there were reasons to account for:
1. a write-down revaluating receivables from Orzeł Surowce in the amount of PLN 1.4 million resulting from the entry into the rights of a satisfied creditor as a result of repayment of the loan by Orzeł Biały S.A. The estimated value of the write-down will reduce the separate operating result.
2. Revaluation allowance for the loss of value of shares in the subsidiary Orzeł Surowce sp. o.o. in the amount of PLN 2.3 million, which will reduce the separate operating result.
The total estimated value of write-downs will reduce the separate operating result by PLN 3.7 million.
The afore-mentioned write-downs are a consequence of receipt of the decision of the Katowice-Wschód District Court in Katowice, 10th Commercial Division, about the declaration of bankruptcy of 26.03.2018 of the subsidiary Orzeł Surowce sp. o.o.
As of today, to the best of the Issuer’s knowledge, the afore-mentioned write-downs will not affect the consolidated financial statements of the Issuer for the first quarter of 2018. The Company reserves that it is in the process of drafting the report for the first quarter of 2018 and, therefore, the amounts presented here above are not final and may change.
Legal basis: Art. 17, Act 1 MAR
17.55