BRE Bank seeks support for Elektrim board changes

Elektrim said yesterday that holders of its convertible bonds are yet to decide whether they will allow it more time to settle its debts. Spokesperson for the power and telecoms group, Ewa Bojar, told Reuters, "For the time being we have no fresh news from bondholders about which we would be required to inform the market." Last week Elektrim proposed to write off 40% of its debts and repay the remainder within the next three years. But analysts consider the move may prove ineffective in deterring the holders of the $537 million worth of Elektrim bonds from launching bankruptcy proceedings. To add to Elektrim's worries, BRE Bank, in partnership with a grouping of other investors, is planning to introduce its representatives on to the company's supervisory board, with the ultimate aim of pushing through changes to the management. Currently BRE Bank controls slightly more than 5% of Elektrim. This is not enough to give it the power to call a shareholders' meeting, and it must therefore reach an understanding with other Elektrim investors. (Puls Biznesu, p. 7; Reuters) M.T.K.