Elektrim deal with Klesch could mean bondholders will have long to wait
Creditors of troubled energy and telecom conglomerate Elektrim have made
public the news that former Elektrim President Waldemar Siwak signed a
confidential $3 million deal in December with London-based financial c
onsultancy Klesch & Co. Under the terms of the agreement, Klesch & Co. will
advise Elektrim on restructuring of the conglomerate's debts. But the terms
of the deal do not suggest a quick solution to the confrontation between
Elektrim and its bondholders: the longer Klesch & Co. takes to negotiate
terms of the settlement with Elektrim bondholders, the higher the fees it is
set to receive. If negotiations end by June 2002, the payment will reach
$500,000, but if they stretch out until December 2002, Klesch will receive
$1.5 million. If the talks last until June 2003 or Elektrim sells its stake
in Elektrim Telekomunikacja and obtains funds to pay off the bondholders,
Klesch will receive $3 million. On top of this, Klesch is set to receive a
monthly fee of $100,000. (Puls Biznesu, p. 8) T.J.
