EAM Solar ASA: Grounds for court decision published by the Criminal Court of Milan

22.10.2019 06:14

22 October 2019 On Tuesday the 15th of October 2019, the Criminal Court of Milan released the grounds for the ruling published on the 18th of April 2019. The document is 300 pages in Italian describing the trial and the grounds for the Criminal Court rulings. The document is now subject to a "court approved" translation to English and will be published by EAM in its entirety when this translation is received. The Criminal Court ruling in favour of EAM Solar ASA, as published on the 18th of April is repeated in the grounds published by the Court ; The Criminal Court of Milano found the two Aveleos Directors Igor Akhmerov and Marco Giorgi guilty for criminal contractual fraud against EAM Solar ASA, and sentenced them to prison terms and a provisional damage ; "Sentenced Akhmerov and Giorgi, together with the civil responsible Aveleos SA, to pay damages in favour of the companies EAM Solar Italy Holding srl and EAM Solar ASA, to be paid separately, with provisional payment determined at 5,000,000.00 euros, as well as reimbursement of court costs, which totalled 15,840.00 euros plus VAT and CPA, and 15% in the form of flat-rate reimbursement of expenses." In addition, the Criminal Court ; "rejected the claim for "compensation in relation to the civil responsible Avelar Energy Ltd. And Enovos Luxemburg S.A." as also stated in the court decision of the 18th of April. On the matter of the civil responsibility for economic damages versus Enovos and Avelar, the Court chose in its decision the 18th of April to reverse previous court resolutions on the financial liability based on the lack of autonomy of Aveleos SA versus its shareholders Enovos and Avelar in conjunction with financial liability. In the grounds published on the 15th the Court states concerning the financial liability the following (preliminary "non-court approved" translation) ; "In the preliminary questions, the Court had rejected the request for exclusion, as civil managers, of the two companies, noting that, in light of the elements offered by the parties, it had to be considered, with the obvious limitations of the preliminary ruling, that it was not possible to see a distinct subjectivity of Aveleos with respect to the integrally holding companies of its social capital and its actual administrators (Enovos Luxembourg for about 59 per cent and Avelar Energy for about 41 per cent, as stated above): this resulted in subsistence of an indicative framework indicative of the responsibility of Enovos Luxemburg and Avelar Energy for the obligations assumed by Aveleos through their managers, as they refer to them. As a result of the judgment, the hypothesis formulated by the Court has not found the necessary confirmation, as elements of denial, or at least doubt, have emerged which do not allow us to believe that proof has been reached that Aveleos was a mere legal shield of its members." The Criminal Court proceedings in Milan involved only two out of six directors of Aveleos involved in the fraudulent sale to EAM. The Enovos appointed directors, subject to a criminal complaint filed by EAM in Luxembourg in 2016 together with Enovos Luxembourg et.al., has so far, to our knowledge, not been subject to any investigation or equivalent process. As previously reported, EAM filed a civil lawsuit against the Enovos directors and Enovos et.al. subordinated the criminal complaint in July 2019. The Criminal Court of Milan has not given any statement concerning the total amount of damages award apart from the provisional, now enforceable, amount of EUR 5 million. To EAMs knowledge the final damages award shall be determined in a civil court proceeding following a final ruling. EAM will revert to the market with updates on legal proceedings as soon as possible, included a more comprehensible description of the fraud now firmly documented and established by the Criminal Court of Milan involving the two directors representing Avelar. Appeals against the Criminal Court ruling must be filed within 45 days of the publication of the grounds for the Courts decision, i.e. late November 2019. For further information, please contact: Viktor E Jakobsen, CEO, phone +47 9161 1009, viktor@eam.no About EAM Solar ASA: EAM Solar ASA is a utility company that acquires and operates solar power plants. The Company currently owns solar PV power plants in Italy. The plants are operating under long-term sales contracts. In addition, the Company's business is lawsuits in relation acquisition of solar power plants. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.