Elektrim stocks dive as threat of bankruptcy looms

Energy and telecom firm Elektrim lost 22.3% of its value on the Warsaw Stock Exchange (WSE) yesterday, with share prices hitting a record low zl. 7.90, and closing at zl. 9.40 per share. Prior to the opening of the session, Elektrim authorities issued an announcement that investors holding convertible bonds worth euro 438.9 million want to exercise an option that requires the Polish conglomerate to purchase the securities no later than December 17 of this year. "We want to pay the bond holders. We only need more time, in order to make a full payment," said company spokesperson Ewa Bojar. According to the rules governing issuing of bonds, if Elektrim fails to pay out the money on time, bond holders will be able to turn to Citibank, the issuing agent, to put forward a motion filing the company for bankruptcy. Elektrim, which has to pay euro 488 million, is looking for financing from banks but also announced that they would not exclude selling their shares of Elektrim Kable, a subsidiary, and Elektrim Telekomunikacja, a company which holds 51% of shares of Polska Telefonia Cyfrowa (PTC), owner of the largest mobile telephone network in Poland, Era GSM. (Rzeczpospolita, p. B1; Puls Biznesu, p. 32; Reuters) A.K.