Balance sheet problems for PHS privatization and investment

The Treasury Ministry decided to extend the period for submitting the privatization bids for Polish Steel Mills (PHS) by one week until April 22. Potential investors gained more time due to the delay in preparing PHS's opening balance sheet. For the same reason, PHS failed to launch the c onstruction of its zł. 110 million coating assembly line in the Florian steel mill as banks, awaiting the opening balance sheet, refused to finance the investment. This year, the concern intends to invest nearly zł. 767 million as agreed with the EU. In related news, the privatization of PHS has been excluded from the offset project carried out by Lockheed Martin, but this is not expected to produce negative results for PHS. Deputy president of US Steel John H Goodish stressed earlier that the American partner wants to invest in the steel mill regardless of whether the investment would be part of the offset project. (Puls Biznesu, p. 4) A.Z.