KBC TFI demands that Sygnity buys back bonds worth PLN 6.8m

Pension Fund KBC TFI is another bond bearer which demands that IT group Sygnity redeems papers with a face value of PLN 6.8 million. Last week, mBank filed a motion asking to redeem PLN 7.5 million in bonds. “The demand for immediate redemption of bonds is due to the issuer's violation of financial ratios disclosed on the basis of information contained in the financial reports for the first half of the financial year 2016/2017,” Sygnity said in a market filing. Back in June, the company informed that after analysis, it estimates that in H1 2016, it will make one-time book-keeping operations amounting to PLN 95.9 million, which will negatively impact its earnings by PLN 76.2 million, which would be in breach of several of the company's bonds and debts agreements. Afterward, several institutional investors demanded that Sygnity redeems its bonds as soon as possible. Last week, Sygnity informed that it reached a deal with bondholders representing some 99 percent of bonds and with banks Deutsche Bank and ING Bank Śląski in which financing institutions vowed not to take actions aimed at executing their rights tied to covenant breach by the firm. The deal was supposed to be in effect for two weeks.