Bumech files to launch restructuring proceedings

WSE-listed mining equipment producer Bumech filed a petition to the court to open the company’s restructuring proceedings in the form of accelerated arrangement proceedings. According to the company, such move was aimed at avoiding bankruptcy. Bumech informed that the direct factors that had influenced the decision to submit the application were: excessive tax debt collection which is in breach of Polish tax law according to the company, a number of loan agreements being terminated, early redemption of bonds, among others. “The management is convinced of the success of the restructuring process at the company has over PLN 80 million in active contracts, as well as positive cash flow allowing for the successful repayment of outstanding liabilities and the current operation,” Bumech said in a market filing. Back in April, Financial market regulator KNF has notified the prosecution of suspicion of committing a crime regarding the alleged purchase of Bumech stock by the China Coal Energy Company. After the news broke, the company’s stock increased by some 26 percent. It was later revealed that the documents concerning the stock sale were forged, and Bumech’s shares were suspended from trading on the WSE.