Elektrim share price plummets amid bankruptcy fears

ING Barings yesterday caused near panic selling of Elektrim shares, after giving the power and telecoms conglomerate only a 50% chance of avoiding bankruptcy. Elektrim shares fell by 18% during trading yesterday, to close at zl.13.1, their lowest value since 1996. In an interview with Gazeta Wyborcza, Elektrim spokesperson Ewa Bojar insisted that the ING Barings' analysis was not very accurate. The specter of bankruptcy has been raised by fears Elektrim might be unable to find the financial resources for a buy-back of convertible bonds worth euro 440 million by the December 15 deadline. Analysts generally agree that the company does not have sufficient resources to cover such an amount. But there are discrepancies in what they think is the size of the shortfall, with estimates varying from euro 50 million to euro 120 million. Most analysts doubt that Elektrim would be able to borrow the money it needs from the banks. They suggest that the only chance for the company to survive is if it sells its telecommunications assets and focuses on the power industry. (Gazeta Wyborcza, p. 30; Prawo i Gospodarka, p. 1) P.W.