The Polish construction giant Polimex-Mostostal stepped up its effort to stay afloat, with a new bond issue and sell-off of assets planned for this year to pay off the creditors. The proposals are intended to provide a powerful starting point for negotiations, that could lead to cleaning up Polimex’s debts. The company also hopes to negotiate prepayments from the state for the contracts for construction work it will carry out on power plants in Kozienice and Opole and looks likely to secure a loan from Industry Development Agency.
Polimex’s net loss reached PLN 370.9m in the first half of the year, which inspired the company’s board to carry out an audit process of the company’s order book.
Polimex now has liabilities of PLN 244m in the road sector that it expects to pay off within three years.
According to the daily Puls Biznesu, Polimex hopes to raise PLN 300m through its bond issue from one or more buyers. But selling shares isn’t out of the question either. “We’re now in talks with some potential buyers that are interested in investing in Polimex,” says Robert Oppenheim, Polimex president. “If the proposal would be interesting, we could acquire a strategic investor,” he adds.
