42/2011 - Information about the entry of a mortgage

The Management Board of Trakcja Polska S.A. (hereinafter: “the Company” or “the Issuer”), announces that on 16 June 2011, Issuer’s subsidiary Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A.(hereinafter:  “PRKiI”) informed the Company about a notification received from the District Court for Wroclaw Krzyki  in Wroclaw, 4th Land and Mortgage Register Department, that into the land and mortgage register no.WR1K/00103043/5 the court had made an entry of a contractual joint mortgage in the amount of PLN 30,000,000 (thirty million zloty) as a security for a debt with regard to loan repayment, claims for  the interest, incidental dues including charges and commissions, arising out of the Loan Agreement on  revolving credit in credit account concluded between PRKiI and Alior Bank Spółka Akcyjna based in Warsaw (hereinafter:„the Bank”) up to PLN 20,000,000.00 (twenty million zloty) (hereinafter:„Agreement”). The above mortgage is a joint mortgage with the mortgage to be entered by the District court for Warsaw-Mokotow into the land and mortgage register no. WA3M/00170938/4.

1. Identification of the entity, on the assets of which the mortgage was established:  PRKiI
2. Date and manner of establishment of the mortgage:16.05.2011, statement of the Bank of 31.03.2011
3. Basic characteristics of the assets on which the mortgage was established:  Right of perpetual usufruct (Polish long-term leasehold) and ownership of a building constituting a separate real property, and facilities constituting separate objects of ownership, located in Wroclaw at ul. Lotnicza 100, of total surface of 13.4092 ha.
4. Value of the obligation secured with the mortgage:PLN 20,000,000
5. Book value of the secured assets:PLN 4,011,255.56
6. No relationships between the persons managing or supervising the Issuer and the Bank and its management staff.
7. Nature of relationships between PRKiI and the entity that took the credit – Issuer.100% shares in PRKiI is held by Trakcja Polska S.A.     

The value of the assets on which the mortgage was established exceeds 10% of the value of equity capital of Trakcja Polska S.A., and the value of the mortgages is higher than an equivalent of EUR 1,000,000 expressed in PLN, calculated according to the average exchange rate announced by the National Bank of Poland, as of the date on which the information obligation arose. 

Legal grounds for the publication of the report:§ 5, section 1, clause 1 of the Regulation of the Minister of Finance of 19 February 2009 on current and regular information published by issuers of securities and the conditions for accepting information required by the provisions of the law of a state which is not a Member State as being equivalent.