Citibank to write off Mostostal Zabrze debts

Citibank Handlowy the major shareholder of Mostostal Zabrze (MZ) and the company's most significant creditor, declared it is ready to write off 60% of MZ debts. The only condition is that the rest of the creditors have to agree on the restructuring of the remaining 60% in liabilities. Citibank, which controls a 35% stake in MZ, did not give any official reason for the decision, stating only in a letter that it aims at reducing the company's debts in order to carry out a thorough restructuring of the company. C urrently negotiations are in progress with the creditors, as the amount of debts that would be a part of the debt restructuring scheme is estimated at zł. 100 million. Such a declaration by Citibank Handlowy turned out to be a surprise to MZ employees who claim that all their previous requests for financial aid have always been turned down by the bank. (Rzeczpospolita, p. B5) A.K.