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Mortgage established by a subsidiary


With reference to Current Report No. 41/2012 of 1 June 2012, the Management Board of LC Corp S.A. (the Issuer) informs that today it received information that pursuant to the decision of the District Court for Warsaw, 10th Land Register Division, of 24 September 2012, a contractual mortgage for a total amount of PLN 135,000,000.00 was entered in the land and mortgage register No. WA4M/00139030/7 for Raiffeisen Bank Polska S.A.
The land and mortgage register No. WA4M/00139030/7 is kept for a real estate located in Warsaw, 85A Grzybowska St. with a total area of 12822.00 m2; the right to the perpetual usufruct to the real estate is held by Warszawa Przyokopowa Sp. z o.o., a subsidiary of the Issuer.
The above-mentioned mortgage constitutes the security for all futures and derivative transactions made pursuant to a framework agreement (the Framework Agreement) together with a foreign currency agreement and an additional swap agreement (the Additional Agreements). The Framework Agreement and the Additional Agreements were concluded between Warszawa Przyokopowa Sp. z o.o. (in which the Issuer holds 81.66%) and an entity unrelated to the Issuer (the entity is not related to any persons in the management or supervisory bodies of the Issuer either) - Raiffeisen Bank Polska S.A. The limit of foreign currency transactions provided in the above-mentioned agreements totals: PLN 70,000,000 with expiry date of 31 December 2014, and for the swap transaction: PLN 20,000,000 with expiry date of 28 June 2024. The Issuer informed about concluding the Framework Agreement and the Additional Agreements as well as securities for the transactions being the subject matter of the above-mentioned agreements in Current Report No. 41/2012 of 1 June 2012.
The value of the assets on which the mortgage was established, as reported in the accounting records, is PLN 117,000,000.00.
The basis for publishing this report is the fact that the value of the mortgage exceeds the equivalent of Euro 1,000,000 converted according to the average exchange rate published by the National Bank of Poland on the day when the obligation to disclose information arises, and the assets on which the mortgage was established are assets of significant value belonging to the Issuer as their value exceeds 10% of the Issuer's equity capital.
Legal basis: Art. 5.1.1 of the Directive of the Minister of Finance dated 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws - Dz. U. No. 33, item 259).