Creditors give support for Huta Ostrowiec rescue plan

The management of Huta Ostrowiec has announced a rescue plan, under which three new companies would be spun off from the debt-ridden steel-maker. Huta Ostrowiec has debts of over zl.530 million, and under the plan the creditors would convert what is owed to them into shares in one or more of the spin-offs. Two other companies could be created later, and eventually Huta Ostrowiec would go into receivership. The arrangement is likely to be accepted by one of the major creditors, Stalexport, while another, a consortium of banks led by Pekao SA, has given its initial approval for the finance and restructuring strategy. The consortium's official response is expected soon. The plan, however, must also be accepted by the court, which will take into account the interests of other creditors. (Puls Biznesu, p. 8) M.K.