Ernst&Young takes LOT to court over failure to pay for turnaround plan

LOT Polish Airlines (LO, Warsaw Chopin) will be taken to court by Ernst&Young (E&Y) for the non-payment of a restructuring plan prepared for the ailing Polish national carrier. According to the Warsaw Business Journal, LOT refuses to pay Ernest&Young demanding instead that it pay for another PLN6.5million (USD2.138million) plan, prepared by PricewaterhouseCoopers (PwC) and later accepted by the Poles over that of E&Y. In response, E&Y is demanding the overdue payment and costs totaling PLN4.4 million. LOT claims that E&Y, knowing that LOT needed an urgent solution, overcharged it by 400% which forced the Poles to turn to PwC. In its defense, E&Y says it was forced to stop working on the plan once LOT ceased payments. The case is due to be heard in April 2014.