Elektrim files for bankruptcy to avoid creditor lawsuit

For almost two years the company has not been paying its liabilities towards creditors, and creditors are demanding liquidation of its wealth and that the Official Assignee in Bankruptcy be introduced. Elektrim can make a last minute save by submitting this petition as the Court can refrain from introducing the assignee in bankruptcy, allowing management to stay intact and the company to hold on to its bourse listing. Elektrim wants to propose a 10% reduction of debt and the postponement of payments, however, it will be the Court that decides how to best satisfy creditor demands. It was creditors who funded many of Elektrim's bad investments. As a result the company was left with subsidiary companies, which were losing its worth. (Rzeczpospolita, September 30 - October 1, p.B1) M.M.