Current Report No. 6/2016: Information on the value of agreements executed between the KRUK Group and the Santander Group

The Management Board of KRUK S.A. (the Company) announces that on February 4th 2016 a subsidiary of the Company, PROKURA Niestandaryzowany Sekurytyzacyjny Fundusz Inwestycyjny Zamknięty (PROKURA NS FIZ, the Buyer) executed a debt purchase agreement (the Agreement) with Santander Consumer Bank S.A. (the Bank), a company of the Santander Group. As a result, the total estimated value of all agreements executed by the KRUK Group and the Santander Group between May 16th 2015 and the date of this report has amounted to PLN 77m, thus exceeding 10% of the KRUK Group’s revenue for the previous four financial quarters, which satisfies the materiality criterion.
The highest-value agreement executed in the period was the Agreement between PROKURA NS FIZ and Santander Consumer Bank S.A.
Under the Agreement, PROKURA NS FIZ purchased from the Bank a portfolio of unsecured retail debts with an aggregate nominal value of PLN 327 m for a price of PLN 51,9 m (the Price). 
At the same time, the Agreement is subject to a condition precedent that the debts covered by the Agreement will be assigned to the Buyer on the Agreement execution date if the Price is paid by the Buyer. The Price is to be paid by the Buyer to the Bank on February 17th 2016.
The Agreement provides for the following contractual penalties:
a) a contractual penalty of 10% of the Price if the Buyer, without consent from the Bank, further assigns the debts, particularly through sale or donation to an entity without equity links with the Buyer within 24 months of the Agreement execution date, which does not prejudice the Bank’s right to seek remedy on general terms. 
b) a contractual penalty of 10% of the Price if the Buyer failed to obtain the required corporate approvals and the required permits of public administration authorities or third parties, including financial institutions and financial supervision authorities, for entering and performing the Agreement.
The Agreement provides for the Bank’s right to rescind the Agreement within 60 calendar days of the Agreement execution date if the Buyer fails to pay to the Bank the Price for the debts by the date specified in the Agreement. The other terms and conditions of the Agreement do not differ from those commonly used in agreements of such type.
Detailed legal basis: Par. 5.1.3 of the Regulation of the Minister of Finance of February 19th 2009 on current and periodic information […]
Back to top