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In its decision handed down on 29 October 2009, the
European Court of Justice identified a violation, on
the part of the City of Cologne, of European laws on
the award of contracts in the conclusion of the lease
between the real estate company Köln Messe 15–18
GbR and the City of Cologne for the northern section
of the trade fair complex Consequently, the City of
Cologne terminated the lease and discontinued
payment of rental fees. Under an interim agreement,
the Northern Halls remain available for use by
Koelnmesse without any restrictions. In exchange, it
pays a usage fee, currently in the amount of 75% of
the original rental fee agreed between the real estate
company Köln Messe 15–18 GbR and the City of
Cologne.
The difference between this and the original rental
fee is set aside in the annual financial statement with
a negative impact on earnings. If the concluding rent
level should turn out to be lower than the original
rent level, the result is a considerable income
opportunity. Liquidity risks would arise if the
concluding rent level is higher than the usage fee
currently paid under the interim agreement. A
termination of the interim agreement is possible at
any time, subject to a notice period of three months,
but has not been exercised to date.
In connection with the aforementioned risks, at its
meeting on 7 April 2011, the Cologne City Council
decided to take all the measures required to ensure
that Koelnmesse GmbH can continue to operate
securely at all times in the future. This will be done in
view of Koelnmesse
’
s importance for the economy of
Cologne and all of North Rhine-Westphalia and will
involve all the legally permitted steps, whereby the
requirements of the European state aid law in
particular will be taken into account.
In 2002, the company concluded a cross-border
leasing agreement for the Southern Halls of the trade
fair complex. The agreement would initially remain in
effect until December 2033. To date, this transaction
has not produced any additional obligations or risks
for the company, and none are anticipated over the
medium term.
Koelnmesse GmbH is a member of the supplementa-
ry pension fund of the City of Cologne (ZVK). ZVK is
responsible for providing its members
’
employees
with a supplementary pension for old age, occupa-
tional disability, incapacity, and surviving dependents.
Currently, these supplementary benefits are financed
through assessments. Parallel to this, ZVK is setting
up capital cover. There is currently still a shortfall in
coverage. If, during the transitional period from
financing through assessments to financing with
capital cover, ZVK should find itself unable to meet
its obligations, Koelnmesse would be required to
carry the obligations resulting from a residual
shortfall in coverage. Koelnmesse does not anticipate
an obligation to pay such additional contributions.
No further major risks that could undermine the
future development of the company are discernible.