PBG Energia comes to debt restructuring arrangement with ING Bank
PBG Energia comes to debt restructuring arrangement with ING Bank
PBG Energia, a subsidiary of PBG (99.95% equity interest), entered into a debt restructuring arrangement with ING Bank Śląski, whereby it undertook to repay a part of its debt, i.e. PLN 2.6m, in exchange for cancellation of the remaining part of the debt. ING's total receivables from the PBG Group, including receivables from PBG Energia, amount to nearly PLN 105m. Further, PBG Energia's contingent liabilities under guarantees provided by the bank, held together with other PBG Group companies as joint and several debtors, amount to over PLN 18.8m. PBG Energia's debt will be cancelled subject to timely repayment of the agreed part of the debt (PLN 2.6m) by December 14th 2013.
In November 2011, PBG Energia acceded to a credit and guarantee framework agreement of September 6th 2007 executed by the PBG Group and ING Bank. Under the agreement, PBG Energia has been jointly and severally liable for the liabilities of other companies which are parties to the framework agreement, under a surety provided by PBG Energia for these liabilities. The surety was a part of PBG Energia's planned financing structure. As a PBG subsidiary, with a relatively low share capital, PBG Energia was not able to acquire external funding and finance its operations on its own. In effect, to continue its business PBG Energia secured additional financing by acceding to credit and guarantee facilities provided to PBG, and agreed to provide a mutual surety with respect to liabilities of other Group companies. PBG Energia did not contract any loans nor use the guarantee facility, but under the framework agreement it is an obligor with respect to the liabilities of other PBG Group companies.
The debt restructuring arrangement with ING will allow PBG Energia to continue its operations without having to file for bankruptcy in connection with the surety provided under the framework agreement with ING.
PBG Energia was established in 2011 with to execute power engineering projects. The company is now engaged in execution of a contract for PGE Górnictwo i Energetyka Konwencjonalna S.A.