Bankruptcy on the cards as Netia bond deadline reached

The deadline passes today for holders of Netia bonds to accept the company's buy-back offer. Netia is prepared to pay 14% of the bonds' nominal value, an offer analysts describe as unattractive and likely to fail. The bond buy-back plan, presented a month ago, is the most important element in Netia's attempt to rescue itself from its financial difficulties. If, as expected, the plan fails, it is probable that the meeting of Netia shareholders scheduled for December 18 will decide to declare the company bankrupt. The cost of servicing its $860 million worth of international bonds is as high as zl.500 million annually, and industry insiders say Netia is struggling to meet the next round of interest payments. (Gazeta Wyborcza, p. 32) P.J.