Why Did Otokar Shares Fall to the Bottom Level?

Otokar Stock Level Management

Otokar (OTKAR) shares experienced a sharp decline following a compensation claim made by the Romanian Ministry of National Defense through the C.N. Romtehnica company. In today's trading session, the shares dropped by 10%, falling to 477 TL.

Compensation Claim from Romtehnica

Otokar stated in a morning announcement that Romtehnica has requested compensation within the scope of the tender for the procurement of 4x4 Tactical Wheeled Light Armored Vehicles they signed with Otokar. The claim, amounting to 191.84 million Romanian Lei, is based on the allegation that the company's production plans in Romania were not fulfilled on time.

Legal Process and Developments

Otokar announced that a lawsuit has been filed to dispute the claim and that negotiations on the matter are ongoing. It was also emphasized that the company needs to protect its legal rights during this process, despite a date for the payment of the relevant amount being established.

Additional Compensation Due to Late Deliveries

Otokar has also received a compensation claim of 7,295,974.66 Romanian Lei (approximately 72 million TL) due to the late delivery of 194 vehicles from the first batch produced at its facilities. This amount is expected to be paid within January.

The Future of the Project and Market Reaction

It has been mentioned that delays and disputes could adversely affect the progress of the project and lead to additional compensation claims. The company stated that it will continue its efforts to resolve disputes and fulfill contractual obligations.

As a result, Otokar, which is at a critical juncture for investors, is facing numerous challenges. The drop in share price requires careful monitoring in the markets.