Cemex 2013 Annual Report Download - page 124

Notes to the consolidated financial statements
• In July 2008, Strabag SE (“Strabag”), one of the leading suppliers of building materials in Europe, entered into a Share Purchase
Agreement(“SPA”)topurchaseCEMEX’soperationsinAustriaandHungaryfor€310(US$427or$5,566).OnJuly1,2009,Strabag
notiedCEMEXofitspurportedrescissionoftheSPA.InOctober2009,CEMEXledaclaimagainstStrabagbeforetheInternational
ArbitrationCourtoftheInternationalChamberofCommerce(“ICC”),requestingadeclarationthatStrabag’srescissionoftheSPAwas
invalidandclaimingthepaymentofdamagescausedtoCEMEXfortheallegedbreachoftheSPAfor€150(US$206or$2,693).After
aperiodofhearings,counterclaims,responsesandtheconformationofthearbitrationtribunal,analawarddatedMay29,2012,was
notiedtoCEMEXonJune1,2012.ThearbitraltribunaldeclaredthatStrabag’srescissionoftheSPAwasunlawfulandineffective,
andorderedStrabagtopaytoCEMEXacompensationfordamages(includingaccruedinterest),arbitrationandlegalcosts.Strabag
ledanannulmentactionbeforetheSwissFederalSupremeCourt(the“SwissCourt”)onJuly2,2012.Duringtheannulmentprocess
withtheSwissCourt,onJuly20,2012,StrabagpaidCEMEX,throughRMCHoldingsB.V.,theamountsorderedbythearbitraltribunal
onitsnalawardfor€43(US$59or$772)and,inordertosecurethepotentialobligationtorepaytheseamountstoStrabaginthe
eventthattheSwissCourtresolvestoannultheMay29,2012nalaward,RMCHoldingsB.V.pledgedinfavorofStrabag496,355
shares(approximatelya33%stake)initssubsidiaryCemexAustriaAG.OnFebruary20,2013,theSwissCourtrendereditsjudgment
rejectingtheannulmentactionbroughtbyStrabagandorderedittopaytheCourtcostsfor100thousandsSwissfrancs(106thousand
dollars)andtocompensateRMCHoldingsB.V.withanamountof200thousandsSwissfrancs(211thousanddollars)forcostsincurred
intheproceedings.Asaresult,thepledgemadeinfavorofStrabagwascancelledonMarch4,2013.Theamountofthenalaward
mentionedabovewasrecordedinthestatementofoperationsin2012,ofwhichapproximately€35(US$48or$628)identiedwith
CEMEX’sdamageswasrecognizedaspartofotherexpenses,net,andapproximately€8(US$11or$141)relatedtotherecoveryof
operatinglossesandexpensescausedbyStrabagwasrecognizedaspartofcostsandadministrationexpenses.
• InApril2006,thecitiesofKaštelaandSolininCroatiapublishedtheirrespectivedevelopmentmasterplans,adverselyimpactingthe
miningconcessiongrantedtoaCEMEX’ssubsidiaryinCroatiabytheCroatiangovernmentinSeptember2005.InMay2006,CEMEX
ledanappealbeforeaconstitutionalcourtseekingadeclarationbythecourtofitsrightsandseekingprohibitionoftheimplementation
ofthemasterplans.ThemunicipalcourtsinKaštelaandSolinhadpreviouslyrejectedtheappealspresentedbyCEMEX.Theseresolutions
wereappealed.ThesecasesarecurrentlyunderreviewbytheConstitutionalCourtinCroatia,anditisexpectedthattheseproceedings
willcontinueforseveralyearsbeforeresolution.Duringtheproceedings,theAdministrativeCourtinCroatiaruledinfavorofCEMEX,
validatingthelegalityoftheminingconcessiongrantedbythegovernmentofCroatia.Thisdecisionwasnal.However,asofDecember
31,2013,CEMEXhasnotbeennotiedofanofcialdeclarationfromtheConstitutionalCourtastowhetherthecitiesofKaštelaand
Solin,withinthescopeoftheirmasterplans,canunilaterallychangethebordersofexploitedelds.CEMEXbelievesthatadeclarationof
theConstitutionalCourtwillenableittoseekcompensationforthelossescausedbytheproposedchangestothebordersoftheland
availableforextraction.Nonetheless,evenwhenitisconsideredremote,wouldCEMEXloseitsminingconcessioninCroatia,itwould
haveamaterialadverseimpactonitsresultsofoperations,liquidityandnancialcondition.OnJune15,2012,CEMEXwasnotied
thatthecasehadbeentransferredfromtheconstitutionalcourttotheadministrativecourtasaresultofanewlawthatplacesthe
administrativecourtsinchargeofdisputesrelatingtoenvironmentalplanning.Inordertoalleviatetheadverseimpactofthemaster
plans,CEMEXiscurrentlyintheprocessofnegotiatinganewrevisedminingconcession.
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