Sygnity creditors terminate loan agreements

WSE-listed IT firm Sygnity had its loan agreements terminated by lenders Deutsche Bank and ING Bank Śląski due to firm's worsening financial and economic condition and breach of credit agreements, the company reported in a market filing. Sygnity owns Deutsche Bank PLN 14.9 million, and PLN 31.4 million to ING Bank Śląski. 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. Two weeks ago, 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.