Dear Customers, Shareholders and Partners, on 10 August this year. District Court Katowice-Wschód in Katowice decided to open sanitation proceedings against FITEN S.A. at the Company's motion filed on 29 July this year. The decision to launch the restructuring process was dictated by the need to protect the Company and its stakeholders in the face of cumulative effects of unforeseen events and their expected adverse impact on the Company's future financial condition.
The events mentioned include:
- PKP Energetyka S.A.'s unjustified and contractually incompatible termination of its cooperation with FITEN S.A. in December 2015.
- the realisation of a very large volume of electricity supplies, which is a legacy of the cooperation with PKP Energetyka S.A., considering the Company's financial capabilities.
- unexpected and, in the opinion of the Company, unjustified market increase in electricity prices on the market wholesale in the second half of June this year.
The unlawful termination of the agreement with the Company by PKP Energetyka SA resulted in the necessity to independently fulfill the obligations towards end customers. the situation combined with a very high and unjustified increase energy prices on the wholesale market, translated into a negative level of the Company's result items in Q2 2016 and prompted the Management Board to adopt a resolution on opening restructuring proceedings, which were finally launched by the Court on 10 August 2016.
I would like to emphasize that the process that has been initiated The restructuring is primarily intended to protect the interests of the Company, its Clients, Shareholders, Partners and all other stakeholder groups.
The main assumption of the planned restructuring is a stable development of the business conducted by the Company, and the need for restructuring itself results from events beyond our control and unpredictable, as a result of which, without the initiation of protective proceedings, there would be a high probability of a threat of insolvency.
We emphasise once again that the concluded contracts for the supply of energy and gas will be carried out without hindrance, and that our overriding objective remains the high level of satisfaction of our customers.
According to the Court's decision, the Company will continue to manage the entire enterprise, while the renowned and experienced entity PMR Restrukturyzacje SA was selected as the administrator in the restructuring proceedings. In my opinion and that of the entire Management Board of the Company, the above decisions of the Court will serve effective restructuring.
In recent periods, FITEN S.A. has been successfully developing its activity in the field of energy sales to end customers, enjoying numerous business successes, which confirmed the Management Board's earlier assumptions and were also an expression of your confidence in our business. I am deeply convinced that the initiated sanitation process will allow us to stabilise FITEN S.A.'s condition and enable a quick return to the previously chosen development track.
Roman Plushchev - Chairman of the Board
Sebastian Woźniak - Member of the Management Board
Krzysztof Czajka - Member of the Management Board
