Accor (ACRFF.PK, ACRFY.PK) reported that French Supreme Court issued an unfavorable ruling to the company in the French distribution tax case. The French Supreme Court sharply reduced the entitlement to a refund of the "précompte" distribution tax paid by Accor in respect of 1999, 2000 and 2001.
As a result, Accor will have to repay 149.7 million euros it received in 2007, along with the late interest in an amount that remains to be determined. The repayment will have an estimated 185 million euros negative impact on the Group's net debt at year-end 2012.
Accor said it takes note of the ruling, and is looking at any further legal actions which may be available before European courts.
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