PKN Orlen asserted claims against Yukos International UK regarding Maziekiu Nafta shares
The Polish oil refining company PKN Orlen announced that in connection with the agreement on the sale of AB Mazeikiu Nafta's shares, concluded on 26 May 2006, PKN Orlen on December 3 2008, delivered to Yukos International UK, headquartered in the Netherlands, a notice regarding PKN Orlen's claims against Yukos International due to differences between Yukos International's statements made on 14 December 2006 with the actual state of Mazeikiu Nafta.
On the closing date of the purchase of Mazeikiu Nafta by PKN Orlen , i.e. on 14 December 2006, Yukos International submitted statements regarding the actual legal and financial state of Mazeikiu Nafta. In accordance with the agreement on the sale of Mazeikiu Nafta shares, concluded on 26 May 2006 between PKN ORLEN as a purchaser and Yukos International as a seller, PKN Orlen should vindicate its claims with Yukos International regarding differences between Yukos International's statements with the actual state. In accordance with the forementioned agreement the maximum value of Yukos International's responsibility for differences in the questioned statements with the actual state amounts to USD 250 million.
On the closing date of the transaction this amount of money was deposited in the escrow account according to the Escrow Account Agreement dated 14 December 2006 (Escrow Account Agreement), as a part of the payment for Mazeikiu Nafta shares in order to secure the potential claims of PKN Orlen towards Yukos International.
PKN Orlen's claims are a result of the verification of Yukos International's statements regarding Mazeikiu Nafta's situation, concluded by PKN Orlen after the transaction had closed. Yukos International, according to the Escrow Account Agreement, may contest PKN Orlen's claims within 30 days.