Elektrim files for bankruptcy, president offers to resign

On Friday, Elektrim filed for bankruptcy. The market quickly responded with Elektrim shares plummeting by 38.8%. Company president, Maciej Radziwill, is trying to open settlement procedures. He said, "We have sent invitations out to bondholders but have not received any response yet". Radziwill added that he is skeptical about the possibilities, "I am pessimistic about talks, as bondholders are strictly sticking to formalities. They do not want to talk and are making many threats". It seems that Friday's decision was based on formal moves to help protect the company. Other analysts believes that such moves were caused by Friday's decision from Elliott Associates L.P., and Merrill Lynch International, who submitted a notice of termination of certain duties resulting from the restructuring agreement signed at the end of July, which enable both groups of bondholders to start bankruptcy proceedings. The court will take one month to consider the application, but it may be withdrawn at any time. (Prawo i Gospodarka, September 14-15, pp. 1, 2) P.W.