In the first half of May 2014, an agreement between our client Konsorcjum Stali S.A. and other company listed on Warsaw Stock Exchange – Bowim S.A. entered into force. Under the agreement Konsorcjum Stali S.A. will receive 30 million PLN in the next eight years within the process of redemption of shares by Bowim S.A. The successful outcome had been preceded by 6-month long negotiations conducted by 5-member negotiation team designated by our firm. Aside from regular legal work – court appearances, drafting documents and analysis our tasks required negotiating and business actions as well. As a result despite the initial fierce dispute between the parties, the negotiators succeeded in applying a win-win outcome model into the final solution.
The details of the agreement were largely broadcasted in trade journals and stock exchange reports of both companies.
The dispute arose in the second quarter of 2013, as a direct result of Bowim’s failure to redeem its shares for the price (25 million PLN) included by the parties in a previously signed agreement. Bowim’s reasoning supported by some acclaimed legal authorities alluded invalidity of the agreement.
Our firm’s first steps had been to ensure several favorable Court rulings relating to security of the claims, subsequently negotiation strategy was drawn up. Realization of the strategy saw Bowim S.A. acknowledging its obligation to redeem the shares with interest in monthly paid installments for the period of 8 years. Furthermore our client received a long lasting security for the claims, while the installments period allows for the other party to gather necessary funds.