The Court of Appeals in Krakow, by a final verdict on July 3, 2017, resolved important matters relating to the bond issue and the effectiveness of the subordination agreement between the lender, the borrower and other creditors subordinating their claims in the agreement.
In the lawsuit for payment of the amount of PLN 84,750,000.00. with interest at the statutory rate from April 2011, in which the defendant (the issuer of the bonds and the borrower at the same time) was represented by counsel Małgorzata Wojciechowska, the Courts of both instances accepted the Law Firm’s argument that the fact that the issuer had not issued the bonds could not be the basis for determining that there had been no effective issuance of the bonds, while the debt subordination agreement constitutes such a strong bond relationship between the parties to this contract that it does not allow the borrower to claim in advance through court proceedings the receivables subordinated to the repayment of the loan.
We are currently awaiting written reasons for the judgment, the more important theses of which we will cite in subsequent updates.