Kocian Solc Balastik is reporting that the 2016 decision by the Municipal Court in Prague in favor of firm client Agrofert in its dispute with the United Bakeries Group has been upheld by the High Court in Prague, bringing the dispute to a final conclusion.
As reported by CEE Legal Matters in June, 2016, the dispute involved "a planned, but ultimately unrealized merger of the company Penam from the Agrofert group with the United Bakeries group .... Specifically, the dispute relates to a deposit for part of the shares in the amount of CZK 100 million, the refund of which, including interest on late payment and court costs, was decided by the court in favor of KSB's client, on the basis that the unrealized merger was not the fault of KSB's client."
KSB is now reporting that "United Bakeries was ordered to return a CZK 100 million advance payment to Agrofert for a thwarted merger with Agrofert Group company Penam, which — according to the court — United Bakeries wrongly charged as a contractual penalty. Moreover, United Bakeries must pay default interest of CZK 36 million plus the costs of the court proceedings."