Cukrownia Strzyzow wants its seized sugar back so it can keep creditors sweet

Sugar mill Cukrownia Strzyzow is planning to issue new shares in order to increase its capital from zl. 32.5 million to zl. 35.6 million. The offer will be addressed to small investors and will not target current investors. The company wants to use the money raised from the issue to pay its debts. Most likely the company will start talking to potential investors before Monday. At the moment, Strzyzow is in talks with one of its creditors and would like to get back sugar that was confiscated for debts and sell it in order to pay plantation owners. Without this sale, the company cannot count on any cooperation with farmers this year. It has operational profits, but the interest on loans is as high as 40%. The Cukrownia Strzyzow sugar mill together with 12 other sugar mills form Lubelsko-Malopolska Spolka Cukrowa S.A. (LMSC). Because of Strzyzow's debt, LMSC was in danger of losing its more profitable entities. In July, LMSC applied for Treasury-Ministry permission to privatize several sugar mills, among them Strzyzow. Thanks to the new share-issue, LMSC will avoid the loss of its most lucrative shares. (Rzeczpospolita, page B4) J.K.