Turkish defence vehicle manufacturer Otokar [BIST: OTKAR] announced in a disclosure to the Public Disclosure Platform (KAP) that a Romanian court has suspended the enforcement of a payment claim of 230,217,479 Romanian Lei filed by C.N. Romtehnica S.A. under the country’s COBRA II armoured vehicle procurement programme.
The claim relates to a tender initiated by the Romanian Ministry of National Defence for the procurement of 4×4 tactical wheeled light armoured vehicles and awarded to Otokar.
According to the company’s statement, Romtehnica previously submitted two payment claims to Otokar, alleging that interim milestones related to local production preparations in Romania had not been fulfilled on schedule. The first claim amounted to 191,847,899 Romanian Lei, while the second claim totalled 230,217,479 Romanian Lei.
Otokar stated earlier that the first payment claim had been settled on its due date without prejudice to its legal rights and that the company had filed an annulment lawsuit against the claim.
Regarding the second payment claim, the company also initiated legal proceedings and requested a suspension of enforcement. Romanian courts have now ruled that the annulment lawsuits related to both claims will be heard jointly and decided to suspend the enforcement of the second payment claim until a final court decision is reached.
As a result of the court’s interim ruling, Otokar’s obligation to pay the second claim amounting to 230,217,479 Romanian Lei has been suspended pending the outcome of the litigation process. The decision remains subject to the right of appeal by the opposing parties.
The dispute relates to the localisation schedule under Romania’s COBRA II programme, which includes the production of part of the vehicles in the country. Romania signed a contract with Otokar for 1,059 COBRA II armoured vehicles under a programme valued at approximately €857 million.
Otokar stated that further developments regarding the litigation process will be disclosed to investors through future material event disclosures or activity reports depending on their significance.
Author: Özgür Ekşi
