Current Report 29/2014Only the Polish version of this document is legally binding.
This translation is provided for information only.
Every effort has been made to ensure the accuracy of this publication.
The Management Board of INPRO S.A. (the "Company") with its registered office in Gdańsk informs that on 31 July 2014 the Company signed with Powszechna Kasa Oszczędności Bank Polski S.A. (the "Bank," "PKO BP") with its registered office in Gdańsk an annexe to the working capital credit agreement No. 05 1020 1811 0000 0196 0065 8724 of 18/03/2014 for the financing of the costs of construction of the Czwarty Żagiel project in Gdańsk, ul. Olsztyńska, described in current report No. 8/2013 of 19/03/2013. On the basis of the annexe:
1. The credit use period was extended until 31/12/2014.
2. A new programme for the unlaunched credit tranches and a new credit repayment programme were agreed with the final repayment date i.e. 17/03/2016 being unchanged.
3. The Company was obligated to submit, within 1 month from the date of signing the annexe, the updated appraisal survey for the real estate being credited.
4. The following additional condition was added to the agreement: failure to comply with or the violation of other agreements (including the future ones) concluded by the Company or its related entity shall be regarded as the violation of the credit in question (the Independent Liability Performance Clause).
5. The credit annexe does not contain other special conditions deviating from those commonly used in agreements of that kind or provisions pertaining to penalties, whose value would exceed 10 % of the value of that agreement or the equivalent of 200,000 euros with reference to the average rate published for a given currency by the National Bank of Poland and binding on the date of conclusion of that agreement.
6. The remaining provisions of the agreement were not changed.
7. In relation to the review of the application for the change of the repayment programme and credit use programme, the Bank will charge a commission.
The significance criterion for annexe is the total value of the object of agreements entered into with PKO BP S.A. during the last 12 months, which exceeds 10% of the Company's equity.
During the last 12 months the INPRO S.A. Group signed agreements for the total value of PLN 74,895,666 with PKO BP S.A.
The agreement for the assignment of rights under the policy as described in current report No. 52/2013 of 18/12/2013, concerning the conclusion of a significant agreement with Powszechna Kasa Oszczędności Bank Polski S.A., has the greatest value among those concluded within the last 12 months.
On 17 December 2013 Hotel Mikołajki Sp. z o.o. within its registered office in Gdańsk, the Company's subsidiary, signed with PKO BP S.A. an agreement for the transfer of a monetary claim under the insurance agreement as security for the repayment of investment credit No. 59 1020 1811 0000 0796 0048 7611 of 5 September 2011, granted to Hotel Mikołajki Sp. z o.o. for the financing of the construction of the hotel and apartment project in Mikołajki, as described in the Company's current reports Nos. 44/2011 of 05/09/2011, 4/2013 of 07/03/2013 and 22/2013 of 29/05/2013.
The object of the claim transfer agreement concluded between Hotel Mikołajki Sp. z o.o. and PKO BP is the transfer to the Bank of a monetary claim following from the insurance agreement for buildings (the hotel and apartment building, office and warehouse building, and apartments in the hotel and apartment building) and construction structures located in Mikołajki. That insurance agreement was confirmed by the insurance policy issued by InterRisk Towarzystwo Ubezpieczeń Spółka Akcyjna, Vienna Insurance Group with its registered office in Warsaw, No. AA 207928 of 27/09/2013 for the total sum of PLN 52,395,666.00 valid until 12/08/2013, and under each subsequent insurance agreement confirmed by the next policy, being an extension of the former one.
The claim transfer agreement contains standard provisions and is a typical agreement concluded in transactions of that kind. The agreement contains no provisions concerning penalties, whose maximum amount may exceed the equivalent of at least 10% of the value of that agreement, or at least the equivalent of 200,000 euros expressed in zlotys; there is no stipulation concerning the condition or a time limit, either.
The Company considers the above-mentioned claim transfer agreement to be significant because its value exceeds 10% of INPRO's equity.
Detailed legal grounds: § 5 par. 1 item 3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information submitted by the issuers of securities and on the conditions for regarding information required by the law of a non-member state as equivalent (Dz. U. [Journal of Laws] of 2009, No. 33, item 259 of 28 February 2009, as amended).