RPG Industries SE does not believe in fair process in the Czech Republic and withdraws from Arbitration

(Praha, 25 March 2010) – RPG Industries SE has announced at its press conference today that it is withdrawing from the arbitration led against it by the finance ministry. As the reason it indicated resolution No. 1506 adopted by Chamber of Deputies on 3 December 2009 which according to the company seriously jeopardizes it right to fair process. The company has submitted its announcement to the arbitration court today.
 
„Czech courts and government are apparently and cogently adversely affected by this unconstitutional resolution,“ said Robert Amsterdam, an international lawyer of RPG Industries and RPG Byty today. „Until this resolution will be nullified by the constitutional court, we have serious doubts that we will receive fair process in the Czech Republic. Therefore we have decided that we will withdraw from the arbitration and we have already sent an acknowledgement of the claim to the arbitration court.“
 
By acknowledgement of the claim the existence of clause 7.6 was recognized, though RPG reserves its right to assert a claim for the proper interpretation of this provision.
 
The whole dispute thus returns to the beginning. RPG Industries intends to take all steps possible to negotiate in good faith to reach a reasonable accommodation with the State on all outstanding issues, with a view to making sure its rights and interests are protected, but doing its best to recognize there are other interests of other stakeholders involved which should be considered.  It wishes to enter into amicable settlement negotiations.
 
„We have always strictly denied that we want to sell the flats in possession of RPG Byty. Our latest steps just confirm that Mr. Zaoralek’s allegations were bogus right from the beginning. We hope that both parties will be able to utilize this break in the course of dispute for rational negotiations,“ continued Robert Amsterdam.
 
Should an amicable solution not be reached, RPG Industries will vigorously pursue its legal remedies both in the Czech Republic and abroad against legal and natural persons.

Informace pro média:

The real estate group RPG Real Estate was established in the middle of 2006 as a result of the transformation of the mining company OKD, a.s. The property and activities related to real estate were incorporated into RPG Real Estate. Today, the brand RPG Real Estate includes the companies RPG Byty, RPG RE Commercial, RPG RE Land, RPG RE Management and RPG Služby. The Group today owns and manages significant property, including residential properties, commercial space, commercial buildings, hotel complexes, hotels and extensive land, primarily in the Moravian/Silesian region.
 

Pavel Kočiš
mediální zástupce Madison PA
Tel.: +420 602 256 539
E-mail: kocis@madisonpa.cz