Execution of a significant debt assignment agreement with Credit Agricole Bank Polska S.A.

Further to Current Report No. 48/2012 of November 30th 2012 concerning a successful auction bid for the purchase of a debt portfolio, the Management Board of KRUK S.A. (the Company) hereby reports that on December 14th 2012 the Company's subsidiary, PROKURA Niestandaryzowany Sekurytyzacyjny Fundusz Inwestycyjny Zamknięty (PROKURA NS FIZ, the Buyer), and Credit Agricole Bank Polska S.A. (the Bank) executed a debt assignment agreement (the Agreement) that provided for the purchase of a portfolio of the Bank's due monetary claims against its debtors, as at September 25th 2012 comprising 37,419 debt claims with a total nominal value of PLN 367.6m, for a price of PLN 59m (the Price), less the value of a bid bond of PLN 0.5, payable in two instalments (the Instalments).

Under the Agreement, Instalment I of PLN 5.4m is to be paid on the date of the Agreement, while Instalment II of PLN 53.1m - on December 21st 2012.

Pursuant to the Agreement, the debt portfolio will be assigned to the Buyer on the date of payment of Instalment II, i.e. December 21st 2012.

The Agreement also provides for a condition precedent that the debt will be assigned to the Buyer subject to the payment of the Price.

Other terms and conditions of the Agreement do not differ from those commonly used in agreements of such type.

The Agreement does not provide for any contractual penalties which might exceed the equivalent of at least 10% of the Agreement’s value or at least the złoty equivalent of EUR 200,000 (translated using the average exchange rate quoted by the National Bank of Poland for the execution date of the Agreement).

The value of the Agreement exceeds 10% of the Group's revenue for the previous four financial quarters and thus satisfies the materiality criterion.

The Company also reports that following the execution of the Agreement, the total value of agreements concluded between the KRUK Group companies and the Credit Agricole Group companies in the last 12 months amounts to PLN 59.5m.

Detailed legal basis: Par. 5.1.3 of the Regulation of the Minister of Finance of February 19th 2009 on current and periodic information to be published by issuers of securities […].

Back to top