24. Contingent liabilities

Notes to the Consolidated Financial Statements

24. Contingent liabilities  

€ 000



Collateral pledged for own commitments


Business mortgages

59,800 59,800


1,426 727


61,194 60,527

Other contingent liabilities are mostly related to bank guarantees on lease agreements.

In addition to the above, legal proceedings instituted by Digia Finland's former employee against Digia Finland Oy, a subsidiary of Digia Plc, concerning illegal termination of employment are pending in the District Court of Oulu, in which Digia Finland is demanded to pay compensation of EUR 0.15 million for illegal termination of employment and to pay for the costs of the legal proceedings. Digia has contested the claim in its entirety and believes it has a good chance of winning the case.

Furthermore, Digia Group's subsidiary has received a customer complaint and a notice of cancellation of a delivery agreement between the parties. In its notice of cancellation, the customer demands that the company refund payments made by the customer and pay a penalty interest on arrears of EUR 0.06 million, and reserves a right to demand compensation for damages if the customer deems it has suffered damages in connection with the case. Negotiations between the parties to settle the dispute amicably are under way, and the company is confident the matter will not require legal proceedings.