25 Nov, 2008 - Today AS Kalev received the ruling of the Harju County Court of 21 November 2008, which blocked the shares held by AS Kalev in AS Kalev Paide Tootmine and AS Kalev Chocolate Factory for partial satisfaction of the petition of AS Alta Foods.
The court dismissed AS Alta Foods' petition to seize the funds of AS Kalev in Estonian credit institutions.
AS Kalev intends to contest the court ruling. Among other things, AS Kalev believes the court ruling to disproportionally encumber the assets of AS Kalev, considering the alleged claim of AS Alta Foods.
AS Kalev finds that, if left uncontested, the court ruling may significantly hinder the economic activities of AS Kalev or its subsidiaries. At the same time, the court ruling is contestable, and AS Kalev intends to exploit all legal means in order to protect its interests. AS Kalev acknowledges that the court passed its ruling merely on the basis of the information forwarded by AS Alta Foods.
The law therefore allows the court to review the ruling on the securing of the action on the basis of AS Kalev's corresponding petition. AS Kalev's legal representative, Glikman & Partnerid law firm, is currently preparing the process documents to be submitted to the court. AS Kalev will ask the court to exercise the legal option of ordering AS Alta Foods to establish a security for the compensation of contingent losses arising from the claim. If the court establishes a security and the plaintiff fails to provide the security, the action may be dismissed.
The court ruling is merely based on AS Alta Foods' allegations. AS Kalev will not therefore comment on the alleged claim or its justification. The court ruling reveals that no statement of claim has been submitted against AS Kalev in the Stockholm Arbitrage Court or other authorities.
AS Kalev disputes the claim made by AS Alta Foods on 24 November 2008 that the 93.9-million-kroon prepayment made by AS Kalev on the basis of the contract of purchase and sale of the shares of AS Kalev Chocolate Factory and certain other subsidiaries of AS Kalev, concluded between the parties on 20 September 2007, needs to be repaid to AS Alta Foods. AS Kalev finds that AS Alta Foods has no contractual basis for withdrawing from the contract, and that, by failing to fulfil its contractual obligations, AS Alta Foods has caused material damage to AS Kalev.
This summer, AS Kalev filed an extra-judicial claim for damages in the total amount of 231.6 million kroons against AS Alta Foods for failure to perform the contract of purchase and sale of the shares. AS Alta Foods has failed to serve
the claim. Still, AS Kalev did not rush to initiate any action against AS Alta Foods. Rather, AS Kalev acted in good faith, giving the buyer time to fulfil his obligations. AS Alta Foods' behaviour gives reason to believe that the company has no intention of fulfilling its contractual obligations. AS Kalev is therefore forced to file an action to protect its interests.
An appeal to the ruling of the Harju County Court from 21 November 2008 may be filed within 10 days of delivery of the ruling.