Pfeifer und Langen turns to court over sugar sector deal

Germany's Pfeifer und Langen (PuL) has turned to the courts for arbitration in its conflict with the Treasury Ministry and sugar producer Krajowa Spolka Cukrowa, and wants to change the sugar sector privatization contract signed by both sides in 2001. Should the court's verdict be favorable to PuL, the company will have more time to carry out investments in a number of sugar plants, as it pledged in 2001, thus avoiding a euro 6 million penalty for breaking the deadline for the investment it committed itself to in the contract. PuL would also like to change the form of its investment from asset investments into a capital increase. According to Janusz Pierun, PuL representative in Poland, the company missed the deadline as it was waiting for a change to the contract it had earlier agreed on with the Treasury Ministry. "We want the court to decide whether extending the deadline for investments is justified," Pierun explained. (Puls Biznesu, p. 8) J.K.