Cause for optimism over Elektrim debt resettlement after first day in court

Holders of euro 480 million worth of Elektrim bonds, repayment of which the telecoms and power group defaulted on last month, have offered some hope that they might accept a repayment delay. Bankruptcy proceedings, which opened yesterday, were adjourned until January 16, after bondholders rejected a proposal from the Elektrim board to write off 40% of the debt and repay the remainder over a three-year period. However, lawyer Pawel Ciecwierz from Wardynski and Partners, who is representing the holders of 75% of Elektrim bonds, appeared to suggest there was some hope of a deal. "Debt repayment delays are only acceptable if Elektrim offers strong collateral," he said. Elektrim's deputy CEO Jacek Walczykowski told the court, "I hope that in some four months the market situation will be better. We will be able to pay our debts when the price of our telecoms and energy assets rises." Elektrim's position has been strengthened by the sale of Elektrim Kable, with the company's financial assets estimated to have increased from euro 75 million to euro 175 million. (Rzeczpospolita, p. B5; Reuters) M.T.