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Bulgaria's Defence Ministry demands repayment

Mon, Feb 12 2007 09:00 CET 386 Views

The Ministry of Defence wants repayment of the money it paid in advance to the global defence electronic company Elbit Systems, according to the contract signed on December 2 2005.

The amount requested is about 12 million euro, in addition to a requested forfeit payment of about three million euro.

The Ministry of Defence put an end to its contract with Elbit for reparation and modernisation of Mi-24 and Mi-17 helicopters by sending notification for a one-sided termination, the ministry reported on January 31.

After two unsuccessful attempts to find mutual agreement on terms of contract termination, the ministry, in a one-sided move, chose to put an end to the contract.

According to the contact signed, one Mi-24 with restored flying ability and lengthened technical resource and two modernised Mi-17 were supposed to be ready in 2006, but the machines have still not been delivered.

On January 29, Elbit Systems received the Ministry of Defence's cancellation notice for termination of the contract amounting to $57 million, the company announced on January 30. In a media statement concerning the issue, Elbit said that it "does not anticipate that this matter will have a materially adverse effect on the company's results and operations". 

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