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Commencement of the payout of compensation for Miranda sp. z o.o.

February 11, 2015

The Insurer of Miranda Company, the hall of which burned down in November last year, has commenced to pay out the compensation. Primarily, a payment in advance has been made towards the compensation, on account of the destroyed section of the building.

The payment in advance amounted to PLN 5,415,303.17. It shall be completed to the replacement value of PLN 7,721,417.31 after disclosing the documentary evidence for the expenditures on the rebuilding of the manufacturing hall. This sum significantly exceeds the book value of the burnt hall, which results from the conditions of the insurance contracts concluded by Miranda Sp. z o.o. According to the management of Lubawa Group, the member of which is Miranda, subsequent payouts should commence soon.

“Currently, the final analyses concerning the completion of the documentation regarding the remaining property lost in fire are taking place. As a result, in the upcoming period we are expecting the next decisions of the Insurer concerning the compensation payouts,” said Marcin Kubica, CEO of Lubawa S.A.

In December the company informed about the restoration of the lost productive capacity through the cooperation within the Lubawa Group, as well as the cooperation with external business partners, which allowed for the peaceful execution of on-going orders, maintaining at the same time the high quality standards of the semi-finished and finished products. Meanwhile, the company also began the identification and acquiring of the new weaving machines that meet the relevant technical requirements. Up until now Miranda has replaced over 50% of the equipment lost in the fire, which enabled the company to resume the production on its own looms.

“We used our best efforts so that the execution of orders after the fire could proceed reliably and thoroughly. As a result, consequences of the fire will not have any adverse effect on the Group’s result for 2014. Currently, over a half of the lost equipment has been replaced, installed and is now working. The remaining machines have been ordered and we are now waiting for their delivery. We are waiting until spring with the restoration of the hall and the new looms are for now being placed in the remaining manufacturing buildings of Miranda sp. z o.o. I should remind you that out of the available 44,000 m2 nearly 4,000 m2 burned down, so we still have enough space available,” informs Marcin Kubica.

The fire in the Miranda textile mills in Turek took place on 21st of November last year. As a result, one of the manufacturing halls burned down. There were, however, no losses in warehouse inventory, raw materials and manufactured goods. The company recommenced business within 48 hours after the incident, promptly commencing the loss adjustment process and restoration of the productive capacity. The priority of the Management Board is the complete restoration of the manufacturing hall before the end of 2015.