Polish Mint proceeds with the implementation of rescue plan for the Mint Legacy Tower. On 17 October a loan agreement and Stand Still Agreement were signed. Their provisions confirm that the terms of the agreement with the bankruptcy trustee, which the Polish Mint reported on 8 October, are being consistently implemented.
On 17 October, Mennica Polska S.A. TOWER SKA announced that its subsidiary has, in the interest of Mint Towers GGH MT (SPV), owner of the office building complex, entered into a targeted loan agreement up to PLN 49.5 million in order to enable SPV to settle its public law obligations (VAT, corporate income tax, property tax). The final amount of the loan will be determined based on the current balance of SPV’s debt due to mentioned public law obligations.
The loan will be secured by a contractual mortgage on the perpetual usufruct of the land and the ownership of the building, comprising the Mennica Legacy Tower complex, to the sum of PLN 74,250,000. Also, there is a declaration of submission to execution for the lender under art. 777 § 1 point 5 of the Code of Civil Procedure to the amount of PLN 74,250,000. The final repayment date of the loan was set as 15 months from signing the agreement.
The Polish Mint has also entered into an agreement with SPV and other credit creditors regarding the financing of the borrower’s current obligations (Stand Still Agreement). This document sets out the commitment of the parties to allow SPV to settle its obligations specified in the Agreement’s content, the establishment by the parties of a target schedule for the repayment of SPV’s receivables, and not to take enforcement actions against SPV during the term of the Agreement. The Stand Still Agreement came into effect on the date of signing on 17 October and is valid until 31 January 2025. However, it can be terminated earlier under conditions specified in the Agreement or once all debts have been unconditionally and irrevocably repaid. Every creditor is entitled to terminate the Stand Still Agreement upon the occurrence of events or circumstances constituting cases of breach detailed in the Agreement.
“There are no signs of the Mennica Tower GGH MT going bankrupt today. The company manages an office building which is 95% leased and generates a positive cash flow. We are very consistent in implementing our plan to prevent the bankruptcy of the building’s owner and protect the interests of retail debenture holders. At the same time, I want to assure that we will not allow any entity, acting in bad faith and to the detriment of this project’s stakeholders, to acquire this asset for less than its market value.” – summarises Katarzyna Budnicka-Filipiuk, President of the Board and CEO of the Polish Mint.
On 8 October, via its subsidiary, Polish Mint entered into an agreement with the bankruptcy trustee acting as part of the Mennica Legacy Tower project. The document was a commitment by both parties to take all steps to ensure the dismissal or withdrawal of the application for bankruptcy of the SPV managing the investment.
The agreement with the trustee stipulated the terms of changes in the management of GGH MT, which is the entity authorized to manage the investment. It also included a commitment to granting a purpose loan to settle public law obligations by Mint Towers GGH MT (SPV). The Polish Mint, along with a group of collaborating entities, has taken over all bank receivables and thereby has become SPV’s largest creditor, which will help restore its operational capacity.
Source: https://managerplus.pl/mennica-polska-realizuje-projekt-ratunkowy-dla-mennica-legacy-tower-98605
