Compromise with AS ESTEVE to end litigations
Harju County Court approved a compromise on two legal disputes between AS ESTEVE (hereinafter: ESTEVE) and AS Tallinna Sadam (hereinafter: Tallinna Sadam), as a result of which both pending legal disputes are terminated and ESTEVE waives claims against Tallinna Sadam. The disputes were related to the early termination by Tallinna Sadam of the mooring service agreements provided by ESTEVE in the Old City Harbour and Paldiski South Harbor. The content of the disputes is described in more detail in the stock exchange announcement published by Tallinna Sadam on 17.01.2020.
The compromise concerns the claim filed by ESTEVE to Harju County Court on 26.08.2016 for establishing the validity of Paldiski South Harbor mooring service contract; and the claim filed on 19.12.2019 for compensation of the loss of revenue due to the alleged unjustified early termination of the Old City Harbour and Paldiski South Harbour mooring services contracts in the amount of EUR 379,768 plus accrued interest.
The dispute related to the Old City Harbour mooring services ended on 07.09.2020 with the decision of the Civil Chamber of the Supreme Court not to accept the cassation appeal in the claim for establishment of the validity of the Old City Harbour mooring services agreements submitted by ESTEVE on 29.08.2016. A stock exchange announcement regarding the termination of the dispute was published on 11.09.2020.
Since 2017, Tallinna Sadam has formed a reserve to cover a possible claim related to ESTEVE's claims, which was canceled in Q3 2020 for the share of the Old City Harbour litigation and in Q4 2020 for the Paldiski South Harbor.
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2019 serviced 10.64 million passengers and 19.9 million tons of cargo. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. According to audited financial results, Tallinna Sadam group’s sales in 2019 totaled EUR 130.5 million, adjusted EBITDA EUR 74.3 million and net profit EUR 44.4 million.
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