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20.4 Notes to the annual financial statements
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
As security, AREVA SA has committed to guaranteeing the redemption of all bond
issues contributed to New AREVA Holding and to guaranteeing the derivatives
of New AREVA Holding with banking counterparties, for New AREVA Holding’s
benefit. At December 31, 2016, the carrying amount of New AREVA Holding’s
bond debt was 4,886,230 thousand euros.
Those guarantees will end once the capital increase of New AREVA Holding has
been carried out in the amount of at least 3 billion euros or, for the guarantee
concerning the bond issues, once they have been redeemed.
In June 2014, AREVA SA gave a parent company guarantee to a banking pool
to secure the redemption of the amortized loan of Société d’Enrichissement du
Tricastin. The parent company guarantee covers 115% of the remaining amount
outstanding of the loan, for which the carrying amount was 555 million euros at the
end of 2016. Within the framework of the partial contribution of assets fromAREVA
SA to New AREVA Holding, SET’s bank borrowings and related security (security
interests in future receivables and bank accounts) were transferred to New AREVA
Holding, with the exception of the parent company guarantee, which remains in
force until the loss of control of New AREVA Holding (except in the event of prior
release according to the contract conditions).
Reciprocal commitments
In January 2013, the group set up a 1.25-billion-euro syndicated line of credit
available in euros over a 5-year period. The group also had bilateral lines of credit
available to it in the amount of 795 million euros, maturing in 2017. As of the end
of December 2016, these lines were fully drawn.
Moreover, AREVA SA negotiated and put in place between February and April 2016
a bridge loan in the amount of 1.2 billion euros with a maturity date of January 20,
2017. This financing expired without having been used.
In early December 2016, AREVA SA entered into discussions with certain
banking partners to set up new bank financing in the amount of approximately
300million euros, with amaturity of January 2018. On January 23, 2017, AREVA SA
accepted the letters of commitment received from the banking partners for this
financing. The credit contract is presently being drafted.
20.4.6.7.
COMPENSATION OF OFFICERS AND DIRECTORS
Compensation and benefits paid to executive officers (members of the Board of
Directors) during the year by the company and the companies it controls, per article
L. 225-102-1 of the French Commercial Code introduced by the New Economic
Regulations Law of May 15, 2001 and amended by the Financial Security Act of
August 1, 2003, amounted to 1,517 thousand euros.
20.4.6.8.
DISPUTES AND POTENTIAL LIABILITIES
Olkiluoto 3 EPR power plant (OL3) (dispute concerning
AREVA NP)
On December 5, 2008, the AREVA-Siemens consortium initiated arbitration
proceedings with the International Court of Arbitration (ICC) for delays and
disruptions suffered in connection with contract performance, and the resulting
additional costs incurred (“D&D Claim”). In July 2012, the court of arbitration
rendered a final partial decision enjoining TVO to release 100 million euros (plus
interest) due to the AREVA-Siemens consortium and withheld in contravention of
the contractual provisions. That decision was duly executed by TVO.
At December 31, 2016, after eight years of legal proceedings (exchanges of briefs
by the parties and audiences with the arbitration court), the parties’ respective claims
amounted to approximately 3.5 billion euros for the consortium (on sections 1 and
2 of its claim covering the start of the project to February 2014) and 2.3 billion
euros for TVO.
In accordance with the schedule for the arbitration proceeding, substantive hearings
on the dispute took place over the course of 2016 and gave rise in the second
part of the year to expert statements through witness depositions. The arbitral
court rendered a partial decision on November 7, 2016. While that decision allows
some of TVO’s claims, it does not necessarily constitute a decision on the financial
outcome of the dispute between the parties.
Other intermediate decisions are expected before the final decision, still expected
for the end of 2017 at the earliest, but more probably in early 2018.
In addition, the consortium and its counsel consider that the allegations of serious/
intentional offense made in TVO’s counterclaim remain unfounded.
Quality audit
Following the announcement in late April that documentary anomalies had been
found in the follow-up of equipment manufacturing processes at the Creusot plant,
an audit is currently being conducted on all of the manufacturing files.
As of late December 2016, the review of the “marked files” continued. For the
operating reactors in particular, error reports were systematically constituted as
soon as the review of these files revealed irregularities.
In October 2016, Greenpeace and other associations filed a complaint against
EDF and AREVA with the public prosecutor’s office of the High Court of Paris
concerning these anomalies, in particular those affecting a steam generator of
Fessenheim unit 2.
Furthermore, in October 2016, in accordance with article 40 of the French Code
of Criminal Procedure under which any established authority and any publicly
appointed official or civil servant with knowledge of a felony or a misdemeanor
within the framework of his/her functions is required to “advise the State Prosecutor
without delay”, the Chairman of ASN referred the matter of “irregularities” in the part
manufacturing files at AREVANP’s Creusot plant to the State Prosecutor. According
to a judicial source, pursuant to this referral, a preliminary investigation has been
opened by the public health section of the public prosecutor’s office of Paris.
This situation could result in other civil or penal implications, both in France and
abroad.
Miscellaneous investigations
AREVA SA is also aware of the existence of other preliminary investigations in
progress led by the French National Financial Prosecutor’s Office.
Since these inquiries are being carried out in connection with legal proceedings
against parties unknown, AREVA SA is not currently implicated.
2016 AREVA
REFERENCE DOCUMENT
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