Court declares construction company Mostostal Gdańsk bankrupt

Another publicly traded company, Mostostal Gdańsk, has been declared bankrupt by the court. The sentence is not yet valid, but it is not clear whether the company is going to appeal to the decision. Justifying the verdict the judge said, "The main reason for the decision is that the debtors assets will not cover his liabilities, and the fact that the company has ceased paying its debts". By declaring bankruptcy, the court virtually scuppered the company's attempts to seek agreement with its creditors. Under Mostostal's former board now abandoned proposal 60% of the company's then zł. 157 million liabilities were to be written off and the remainder was to be paid in five years. However, by the end of 2002 Mostostal total liabilities together with reserves amounted to zł 200 million. The news sent the company's shares down by 21.2%. (Parkiet, p. 4; Puls Biznesu, p. 8) J.K.