Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) hereby announces that on 24 September 2015 the Company and Powszechna Kasa Oszczędności Bank Polski S.A, Bank Gospodarstwa Krajowego, ING Bank Śląski S.A. and PZU Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych BIS 1, as the bondholders holding the bonds issued by JSW under the bond issue program established on the basis of the issue program agreement of 30 July 2014, entered into a further cooperation agreement (“Further Cooperation Agreement”).
During the term of the Further Cooperation Agreement, the bondholders undertook to:
(a) refrain from exercise of their rights following from the possibility to demand early redemption of the bonds due to the Company’s failure to issue bonds on international capital markets by 30 July 2015 (“Put Option”), which the Company recently reported in, among others, current report no. 37/2015 dated 30 July 2015;
(b) conduct talks with JSW in good faith to agree on and sign, by 15 October 2015, a list of key terms and conditions of restructuring of the financial debt of JSW and JSW group companies (“Term Sheet”); and
(c) conduct talks with JSW in good faith to agree on a scenario for restructuring of the financial debt of JSW and the JSW group through entering into a restructuring agreement by 30 November 2015 (“Restructuring Agreement”).
In addition, in the Further Cooperation Agreement, ING Bank Śląski S.A. gave consent to defer the due date of the claim for payment as part of redemption of the bonds subject to the early redemption demand made in connection with occurrence of the Put Option, delivered to JSW on 7 September 2015. The deferral of the due date envisages making the payment in 3 installments on the dates specified in the Further Cooperation Agreement.
If the Restructuring Agreement does not enter into force by 1 December 2015 (inclusive of this date), JSW will be obligated to carry out an early redemption of part of the bonds from all the bondholders on the terms and conditions and at the dates laid down in the Further Cooperation Agreement.
The Further Cooperation Agreement prevails from the date of its conclusion to the earlier of:
(a) 30 November 2015;
(b) the date on which any party terminates the agreement in connection with occurrence of the events of default specified in the Further Cooperation Agreement; or
(c) date of conclusion of the Restructuring Agreement.