GÖTEBORG, Sweden, Feb 09, 2017 /PRNewswire/ --
The Management Board of Arctic Paper S.A. (the "Company") hereby announces that on 8 February 2017 Arctic Paper Munkedals AB ("AP Munkedals") and the Company concluded a factoring agreement with assignment of receivables arising from an insurance agreement("Factoring Agreement"), which was concluded between AP Munkedals as seller, the Company as guarantor and BGŻ BNP Paribas Faktoring sp. z o.o. (the "Factor") as factor.
Under the Factoring Agreement, the Factor is to provide factoring services for AP Munkedals incorporating the acquisition of AP Munkedals' receivables from its counterparties, with the maximum factoring limit granted to AP Munkedals being PLN 35,000,000 (thirty five million zlotys). On the basis of the Factoring Agreement, the Company undertook to settle AP Munkedals' liabilities in respect of the Factoring Agreement if AP Munkedals does not settle them in full or part in the time limit set out in the Factoring Agreement. The Company's undertaking will remain in force until all the liabilities arising under the Factoring Agreement have been settled, but no later than 36 months after the date of its termination, and is limited to PLN 52,500,000 (fifty two million five hundred thousand zlotys).
The Factoring Agreement provides for the establishment of the following security interests, which are standard for agreements of this type:
- assignment of present and future receivables from counterparties declared to the Factor by AP Munkedals;
- a blank promissory note with a promissory note declaration; and
- power of attorney to the AP Munkedals bank accounts at Bank BGŻ BNP Paribas S.A.
The Factoring Agreement does not depart from market standards used in similar factoring agreements.
The conclusion of the Factoring Agreement is associated with the process, which the Company commenced in 2016, of refinancing the existing indebtedness of the Company and its subsidiaries and with the change to the structure of financing of the Company's group.
For additional information, please contact:
Acting President of the Management Board of Arctic Paper,
Tel. 46 733-21-70-09
This information is disclosed pursuant to Art. 17 sec. 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and was submitted for publication on 9th February 2017 at 8:00 am CET, in reference to Arctic Paper's current report no. 4/2017 filed with the Warsaw Stock Exchange
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SOURCE Arctic Paper