Cable unit sale finalized ahead of Elektrim court case
Cash-strapped telecoms and power group Elektrim announced yesterday that it
had redeemed commercial paper worth zl.338.9 million from PAK power group,
in which it holds a minority stake. The company said that repayment of the
debt, which was due on December 29, followed a ruling last week by a court
in Poznan. Meanwhile, the sale by Elektrim of a 70.5% stake in its cable
unit to Krakowska Fabryka Kabli has been completed. Last month the company
agreed to sell the stake in Elektrim Kable for $110 million. The latest
developments come ahead of bankruptcy proceedings that are due to begin
today. Elektrim's bondholders have filed a bankruptcy petition with the
Warsaw court, claiming that the company has defaulted on debts of euro 480
million. The court will also hear an application from the Elektrim
management to begin debt restructuring proceedings. (Prawo i Gospodarka, pp.
1, 10; Reuters) P.J.
