EU accepts government solution for bankrupt Czestochowa steel mill

The bankruptcy of State Treasury-owned Huta Czestochowa (HC), one of the most modern steel mills in Poland has been finalized. HC's liabilities, amounting to zl. 1.2 billion, are bigger than value of the steel mill's assets. Therefore the government was forced to declare HC bankrupt. It will be replaced by a new company which will take over its assets. According to unofficial information in Rzeczpospolita, the European Union has agreed to this solution, as it will reduce the cost borne by the state to restructuring the mill. HC is the largest employer in Czestochowa. Together with its 12 subsidiaries it employs over 5,500 people and has an over 6% share of the national steel production market. (Rzeczpospolita, p. B1) A.Z.