49/2012: Early settlement of a forward contract by BGŻ S.A.
The Management Board of PBG S.A. hereby reports that on June 6th 2012 it was notified by Bank Gospodarki Żywnościowej of Warsaw of an event of default identified under framework agreement No. 888477/2011/LT, executed on December 27th 2011. The Bank claims to be entitled to an immediate early settlement of all transactions as a result of the following events of default under the agreement:
1) PBG S.A.’s breach of the covenant to maintain an economic and financial standing which, in the Bank’s opinion, would be sufficient to secure PBG S.A.’s ability to meet its liabilities towards the Bank;
2) occurrence of legal or factual circumstances giving rise to a risk of PBG S.A. being placed in liquidation or declared bankrupt, in particular filing by PBG S.A. of a bankruptcy petition or a declaration of instituting recovery proceedings or any other declaration in which PBG S.A. directly or indirectly states that it is not able to repay its debts on the maturity date or that its assets are insufficient to cover its debts;
3) occurrence of legal or factual circumstances on the side of PBG S.A. which, in the Bank’s opinion, materially increase the Bank’s credit risk related to the transactions, in particular, PBG S.A.’s failure to meet its liabilities under credit facility agreements, loan agreements or other similar agreements, to an extent entitling the Bank to declare the liabilities immediately payable.
The Bank identified the events of default based on Current Report No. 42/2012 of June 4th 2012 on a petition for insolvency with arrangement option filed by PBG S.A., Hydrobudowa Polska S.A. and APRIVIA S.A. With respect to the default referred to in item 3 above, the Bank indicated that its occurrence was identified based on PBG S.A.’s failure to repay on the due date its liabilities under two credit facilities advanced by DnB Nord Polska S.A. and Bank Millennium S.A.
Legal basis:
Art. 56.1.1 of the Public Offering Act – inside information
Pliki:
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