Polimex-Mostostal signed a new agreement with creditors last month which gives the Polish builder three years to pay off its debts. According to the agreement, Polimex will only pay the interest rates on its PLN 2.1bn debt over the period.
“The deal has made it possible for us to pay off the debt after we regain our cash flow with no penalties. All the surplus on our business activity will be intended to repay the debt,” said Robert Bednarski, CFO at Polimex-Mostostal.
The debt will be paid in four installments in 2016. In order to meet its deadline, Polimex must make serious cuts to its financial structure and offload some of its assets this year. It already started to reducing its workforce in 2012.
The company said it will not be taking new contracts this year.
