With reference to current report no. 32/2009 of October 6, 2009, the Management Board of Echo Investment SA (the Issuer) hereby informs that on January 20, 2010 the Issuer received a decision of the District Court for Krakow - Śródmieście District in Krakow, 7th Economic Department of Pledge Registry, concerning an entry made in the Pledge Registry on January 12, 2010 of a lien on shares in the Issuer’s subsidiary "Projekt Echo - 62" Sp. z o.o. with its registered seat in Kielce (the Subsidiary).
The lien was established on 7,731,000 shares of the Subsidiary, held by another subsidiary of the Issuer (Echo - Pasaż Grunwaldzki Spółka z Ograniczoną Odpowiedzialnością Sp.k. with its registered seat in Kielce), with a par value of PLN 386,550,000, constituting 99.99% of issued capital and carrying 7,731,000 votes at the general meeting of shareholders.
The book value of the shares whereon the registered pledge was established in the accounting books of Echo – Pasaż Grunwaldzki Spółka z Ograniczoną Odpowiedzialnością Sp.k. is PLN 386,550,000. Echo – Pasaż Grunwaldzki Spółka z Ograniczoną Odpowiedzialnością Sp.k. considers these shares to be a long-term equity investment.
The lien established on these shares is a collateral in favor of Eurohypo AG Bank of Eschborn, Germany, concerning repayment of liabilities arising from the credit agreement executed between the Issuer's subsidiaries: Echo – Galeria Kielce Sp. z o.o. with its registered seat in Kielce (the Borrower), Projekt Echo – 62 Sp. z o.o. with its registered seat in Kielce (the Guarantor), and Eurohypo AG Bank with its registered seat in Eschborn, Germany (the Bank, the Lender), which the Issuer communicated in its current report no. 32/2009 on October 6, 2009. The lien on the shares was established pursuant to agreement of registered pledge on shares, made on November 25, 2009 between Echo - Pasaż Grunwaldzki Spółka z Ograniczoną Odpowiedzialnością Sp.k. (the Pledger) and Eurohypo AG Bank (the Pledgee). The value of receivables secured by the said lien is EUR 150 million (according to the average exchange rate of the National Bank of Poland as on the date of making the registered pledge, the said amount is an equivalent of PLN 612.21 million).
No relationships exist between the Issuer or members of the Issuer’s management and supervisory bodies and the party, for which the pledge was established or members of this party’s management bodies.
The assets on which the lien was established have been considered significant on the basis of Issuer’s equity criteria.
Legal basis: §5.1.1 of the Regulation of the Minister of Finance (Journal of Laws no. 33 item 259) of February 19, 2009 on current and periodical information published by issuers of securities and terms of recognizing as equivalent information required by laws of a non-Member State.
















