Troubled Polish builder Polimex-Mostostal managed to reach a deal with its creditors, delaying the execution of its liabilities for another three years. The debt of the company will be restructured, according to Polish media reports, which will allow Polimex to start raising money through the stock market to pay off its debts. ”We managed to reach an agreement that’s crucial not only for Polimex and the Industrial Development Agency ARP, which has a 33-percent share in the company (PLN 277m), but also for the entire energy sector in Poland,” Wojciech Dąbrowski of ARP told the daily Puls Biznesu. If Polimex declares bankruptcy, many investments could be put on hold for the Polish energy sector.
Polimex owes PKO BP, Peako, Millennium, BOŚ and Kredyt Bank a total of PLN 2.1bn: PLN 670m in loans, PLN 250m in bonds set to be converted into shares and PLN 1bn in guaranties. “During the past several months, the company has been working on the new financial strategy, which has now been approved by shareholders and creditors,” said Robert Oppenheim, head of Polimex-Mostostal. “We had entered into agreement with the strategic investor ARP, we secured an important contract for the power plant in Kozienice, having also implemented deep restructuring for the company.” Oppenheim said the restructuring program for the company could take two years.
