mBank demands that Sygnity to redeem PLN 7.5 mln in bonds within 11 days

Lender mBank issued a motion to WSE-listed IT firm Sygnity, asking it to redeem 750 bonds worth PLN 7.5 million within 11 days, despite an earlier agreement between bondholders and Sygnity to refrain from taking actions aimed at executing their rights tied to covenant breach by the firm. mBank was included in the agreement. 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. Earlier this 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.