Current reports
Current report no. 33/2015
Making arrangements with the Lenders concerning the credit agreement for modernisation of units 1-4 in the Pątnów Power Plant.
Legal basis:
Art. 56 section 1 point 2 of the Public Offering Act - Current and periodic information
Contents of the report:
In connection with current report no 8/2014 as of 13 March 2014 informing about concluding credit agreement in amount of 1 200 000 000,00 zł („Agreement”, „Credit”) between Zespół Elektrowni Pątnów-Adamów-Konin S.A. („Company”) and consortium of banks in composition of: mBank S.A., Bank Gospodarstwa Krajowego, Bank Millennium S.A., Bank Polska Kasa Opieki S.A. oraz Powszechna Kasa Oszczędności Bank Polski S.A. („Consortium”, „Lenders”), the Company informs that on 8 December 2015, the Company accepted the conditions of the Consortium on the regulation of failure to comply with the schedule of the investment project involving the modernisation of the units 1-4 in the Pątnów I Power Plant and co-financed with the credit granted by the Consortium ("Investment Project").
The Company informed about the progress in the implementation of the Investment Project in subsequent periodical reports. The current modernisation works related to the units 1 and 2 have been completed. At the moment, the Company is carrying out activities in order to obtain formal permits ending investments in these units. According to the schedule of the Investment Project, commencement of the modernisation works on the unit 3 was to occur together with the completion of the modernisation works on unit 1 and, similarly, commencement of the works on the unit 4 was to occur together with the completion of the modernisation works on the unit 2. However, the Investment Project's assumptions have been developed in market conditions different from the current ones on the energy market, in particular in the sector of producers of electricity. Changing economic and legal conditions (including, among others, the planned introduction of the BAT conclusions), including the decrease in the profitability of energy production in coal-fired power plants, caused the necessity of re-analysis of the effectiveness of investment tasks expected for the units 3 and 4 and postponement of the shut-down of these units in order to execute the scheduled modernisation works (the Company included a wider discussion of the reasons for the necessity of re-analyses in the periodical report for the third quarter of 2015 on pages 13 and 14 in the Other information related to the Extended Consolidated Report for the third quarter of 2015). In relation to the above fact, the Company has applied to the Consortium for a waiver of the exercise of the Lenders' rights resulting from the failure to comply with the schedule of commencement of the modernisation works on the units 3 and 4.
In accordance with the terms accepted by the Company, the Lenders, until 31 May 2016, waived from the exercise of the rights resulting from the failure to comply with the schedule of Investment Project implementation. Whereas the Company obliged to present the Lenders with the description of the further strategy of the Company and the ZE PAK S.A. Capital Group (the "Group") taking into account the postponement of the commencement of the modernisation of the units 3 and 4 together with the strategy of further operation of these units and the updated financial model for the Company and the Group not later than until 29 February 2016. The Company obliged to provide the said description and the updated financial model under pain of considering that the waiver is not performed.
On the basis of the documents prepared by the Company, the Consortium and the Company, by 31 May 2016, will have decided on the postponement of the availability date and disbursements of the credit for the units 3 and 4 or the limitation of the scope of the Investment Project and abandonment of the part of the credit allocated to its further implementation.
Legal basis: § 5. 1 item 3 of the Finance Minister’s Regulation of 19 February 2009 on the Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the Regulations of a Non-Member State as Equivalent.
Signatures of persons representing the company:
Wojciech Piskorz – member of the Supervisory Board of ZE PAK SA delegated to temporarily perform the duties of President of the Management Board
Aneta Lato-Żuchowska – Vice-President of the Board