Registered pledges on material assets
WARSAW, Poland – June 15, 2007 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced, in connection with its current report dated May 15, 2007 on signing the credit facility agreement with Rabobank Polska SA, that on June 14, 2007 Netia received the court decisions on entering to the court’s register the following pledges:
- registered pledge on a set of movables and rights constituting an organized part of Netia’s subsidiary Świat Internet SA with its seat in Warsaw (“Świat Internet”) and used by Świat Internet in conducting its telecommunications activities. As at May 31, 2007, the above assets were reflected in Świat Internet’s accounts at the total book value of PLN 938.7 million. The pledge was entered to the register of pledges on June 1, 2007. The pledge was classified by the Company as a pledge on material assets in view of the fact that the value of the above assets exceeds 10% of Netia’s equity;
- two registered pledges on Świat Internet’s 464,000 registered shares in Premium Internet SA with its seat in Warsaw (“Premium Internet”) with the nominal value of PLN 100 each, representing 100% of Premium Internet’s share capital and conferring the right to 100% of the votes at its general shareholders’ meeting. The above 464,000 shares are reflected in Świat Internet’s accounts at the total book value of PLN 3 million. The pledges were entered to the register of pledges on June 1 and 4, 2007. The shares on which the registered pledges were made are investments of a long-term nature. The pledges were classified by the Company as pledges on material assets in view of the fact that they were established on more than 20% of Premium Internet’s shares.
The above described registered pledges, except for the second pledge mentioned in the item 2 above, were established by Świat Internet in favor of Rabobank Polska SA in order to secure the repayment of a term loan granted to Netia on May 15, 2007, and are capped at PLN 375 million each pledge.
The latter pledge described in the item 2 above was established to secure the repayment of a revolving loan granted to Netia by Rabobank Polska SA under the same credit facility agreement, and is capped at PLN 75 million.
Rabobank Polska SA is an entity not related with Netia.