Bank of America and Bank Handlowy to rescue Hortex

Bank of America and Bank Handlowy to rescue Hortex Hortex, one of the biggest Polish frozen vegetable and juice producers will not close down. Bank of America and Bank Handlowy have just arranged to purchase 30% of the troubled company from Bank Gospodarski Zywnosciowej (BGZ). Bank of America is also interested in cooperating with Hortex's small investors to later takeover their stake. The cooperation is needed to complete the sale of Hortex divisions producing frozen fruit and vegetables and apple juice concentrate, a long term bond issue and layoffs. In addition, BGZ officials say they are uncomfortable holding Hortex shares and being its creditor. Last year was one of the worst for Hortex leading BGZ to invest less money. Still, its obligations will exceed zl. 100 million. The bank is also involved in the company's bond issue that is to bring zl. 200 million and restore the company's solvency. (Rzeczpospolita, page B3)