Bank of America and EBRD see future in Hortex, if given financial support

Bank of America (BoA) has decided to increase its stake in Warsaw-based frozen foods and juice producer Hortex, to over 50% to become the company's strategic investor. "We are interested in increasing our share in the company, to have a decisive influence over its development. We are ready to give our financial support, but on sensible conditions," said Wojciech Goc, a representative of BoA's Investment Fund, which holds a 37.8% stake in Hortex. In BoA's appraisal, Hortex has almost accomplished its restructuring, has a stable market position and can improve both its sales and profitability on the condition of receiving financial support. Financial restructuring of the company will be accomplished by next year at the latest. BoA and the European Bank for Reconstruction and Development (EBRD) and possibly Bank Handlowy (BH), currently the main shareholder in Hortex, are ready to purchase the company's long-term bonds. In October 2001, Hortex' shareholders agreed to an extension of the maturity for commercial securities until the end of 2002, leaving the company with zl. 200 million in cash. In the 2000/2001 accounting year, Hortex' sales amounted to zl. 475 million, operational profit was zl. 3 million and the net loss was zl. 50.6 million. (Rzeczpospolita, p. B3) M.T.