The Management Board of Sygnity S.A. ("Issuer", "Company") informs that on July 21, 2017, the Company received: termination of the multi-purpose line contract concluded with Deutsche Bank Polska S.A. with its registered office in Warsaw ("Kredytowa I", "Deutsche Bank") and termination of the loan agreement concluded with ING Bank Śląski S.A. with headquarters in Katowice ("Kredytowa II Agreement", "ING Bank Śląski") (together as: "Loan Agreements" "Banks"), about which agreements the Company reported among others current report no. 34/2017, current report no. 38/2017 and in the extended consolidated report for the first half of the financial year 2016/2017. br> According to both terminations received, the reason for terminating the Loan Agreements is the deteriorating economic and financial condition of the Company, which may affect the Company's ability to perform its obligations, as well as occurrence of breaches of Credit Agreements and other events in the opinion of the Banks the basis for termination of the Loan Agreements, such as, in particular: improper performance by the Company of liabilities arising from issued bonds, or claims by one of the subcontractors with whom the Company cooperates in connection with a long-term public administration project implemented by the Company for payment amounts in the amount of PLN 24 million. br> In the received denunciations, both Banks indicated that the Loan Agreements were terminated in accordance with the relevant provisions of the Banking Law with a seven-day notice period. br> Justifying the termination of the Loan Agreements, the Banks pointed primarily to the abovementioned circumstances calling on the Company to return the amounts of credits used, including interest due on the day following the date of expiry of the period of notice. As at the day of termination, Deutsche Bank's books include debt under the Loan Agreement I amounting to approximately PLN 14.9 million, and ING Bank Śląski's debt under the Loan Agreement amounting to PLN 31.4 million. Br> W in the opinion of the Management Board, the notice received should not affect the course of ongoing talks with bondholders and banks financing the operational activity of the Company, i.e. Deutsche Bank and ING Bank Śląski regarding the redemption of the Company's bonds, which the Issuer reported in Current Report No. 54/2017. The company reminds that asthe deadline for negotiating a formal agreement was set by the interested parties for a period of about two weeks, with the Company expecting to resolve the talks in the coming days. br> Legal basis: br> 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 (regulation on market abuse). Br>
Source: company website, investor relations, current and periodic reports.