ARP battles with aid applications which are not backed by restructuring plans

The majority of companies which have requested financial support from the Industrial Development Agency (ARP) have not drafted adequate restructuring plans. As a result it is possible that they will fail to receive such support from the state, which, for many of them could ultimately mean financial collapse. It cannot be excluded that the wave of protests which has plagued the country recently is going to increase. Statistical data showing that the economy is recovering contradicts the general mood of the public," said Solidarność leader Janusz Śniadek. The liabilities of 39 companies which have submitted their motions to the ARP amounts to zł. 24 billion, which is just zł. 5 billion less than their total revenues. Only eight of them were profitable. The majority of the firms in question operate in difficult sectors such as mining, steel and the chemical sectors and state assistance may be necessary to rescue them from bankruptcy. So far, only the Gdynia Shipyard has undergone full restructuring and received the first tranch of financial help from the state. (Rzeczpospolita, p. B1) A.Z.