Elektrim unable to cover convertible bond buyback

Officials at Elektrim have announced that the company does not have sufficient funds to cover its convertible bonds buyback which ends today. According to its financial report, Elektrim has only euro 276 million in cash, while euro 488 million is required for the buyback. The conglomerate will however seek an agreement with the bondholders and pay them the interest of euro 8.35 million by the end of the day. Elektrim issued a statement on Saturday that its adviser Merrill Lynch International is conducting talks with the bondholders and Elektrim's underwriter, Citibank, in order to restructure the bonds. The company has also said it is keeping in mind that only 25% of the bondholders are necessary to initiate bankruptcy proceedings in case they choose not to wait for a settlement. According to Gazeta Wyborcza, market analysts believe the best solution for Elektrim would be to delay the buyback by several weeks until the company has gathered enough money. Elektrim's assets in telecommunications and energy total an estimated euro 1 billion. (Gazeta Wyborcza, p. 20, Rzeczpospolita, p. B1, Reuters) M.T.K.