Getback trading suspended after the company makes false claims about financing talks

Warsaw Stock Exchange Image : WBJ

The Warsaw Stock Exchange has suspended the trading of debt collector GetBack and its bonds “to protect the interest and security of market participants, the WSE said on its website. The Warsaw bourse made the decision after GetBack’s shares were down by 17 percent mid-Monday.

Early in the morning, before the trading on WSE started, the troubled company announced that it is in talks with state-owned Polish Development Fund and WSE-listed lender PKO BP on up to PLN 250 million in credit and investment financing and expects to sign the respective deals “as soon as possible.” That claim was denied by both PFR and PKO BP soon after that. “This is completely incomprehensible. We are not in any negotiations,” PFR head Paweł Borys said.

In other troubling news for the investors, on Friday GetBack announced that it failed to pay PLN 10 million to investment fund Quercus to redeem its bonds. Both sides agreed to postpone the deadline to April 18, Quercus later said that it received PLN 4.5 million for the bonds.

“I still believe the company can be saved but all parties must act responsibly, stay calm and take care of their parts of the situation, just as we did,” Quercus CEO Sebastian Buczek said.

“The market expects Abris [company’s biggest shareholder] will inject the capital,” he added and warned that if all investors fail to reach an agreement “a politically difficult situation” could arise, as PLN 2 billion in investors assets are involved.

GetBack will resume its shareholders’ meeting on Tuesday. The company is looking to raise PLN 1 billion through private placements, however, one potential investor has already withdrawn from negotiations, with three Israeli funds still in talks according to the company.

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