Economy Ministry presents new plan for easing Huta Katowice debt burden

The Economy Ministry, the sole shareholder in steel mill Huta Katowice, has devised a new plan for reducing the company's debts. In exchange for a decrease in its VAT obligations, HK will hand over to the Treasury its 51% stake in power plant Elektrocieplownia Nova, worth zl.70 million. The government will also try to convince the consortium of HK's creditor banks to write off 50% of its debt and accept payment of just zl.130 million. However, HK chief financial officer Krystian Kozakowski has said the only long-term solution for the company's debt problem lies in the industry's consolidation into the Polskie Huty Stali holding. (Puls Biznesu, p. 5) M.K.