BGZ to withdraw from Hortex unless others sell stake

Bank Gospodarki Zywnosciowj (BGZ) is to withdraw from its investments in Hortex Holding S.A., Rzeczpospolita daily has learned unofficially. However, Bank of America and the European Bank for Reconstruction and Development (EBRD), the remaining investors who signed the agreement of the mutual investment in July 1997 are not planning to sell their stakes in the foreseeable future. Both investors agree that the restructuring of the embattled Hortex is necessary and the quicker it is completed the better for the company. BGZ points out that it was often difficult to reach consensus among the stakeholders concerning the restructuring and the management structure. Now they want foreign investors to sell their share in Hortex to them for a symbolic dollar or the bank will pull out from the enterprise. Starting in June 2000 Hortex will be stripped of its four plants, two of which in Plonsk and Siemiatycze are to be closed down unless their sale is completed by the end of the month. This year will also see a public offering of convertible bonds which will amount to zl. 180 million and would allow for the financial restructuring of the company. (Rzeczpospolita, page B4) P.S.