Failure to find a partner forces leasing firm CLiF to seek court protection

Centrum Leasingu i Finansow (CLiF) has admitted defeat in its attempts to find a strategic partner, and has applied to the court for protection from its creditors. The company no longer has the financial means to service its zl.230 million debt, or continue with its daily operations. CLiF started looking for an investor in February, but failed to finalize a deal with a bank or investment fund willing to finance its leasing agreements. Other attempts to raise capital also failed, notably plans for an offering of 20 million shares to its existing shareholders, and for a zl.400 million bond issue. Last year CLiF was the tenth biggest company on the Polish market in terms of the value of assets leased. However, its turnover has dropped dramatically this year as a result of a change in the policy of the banks toward the financing of leasing agreements. CLiF made a net loss in the first six months of 2001 amounting to over zl.1 million. (Rzeczpospolita, p. B5; Puls Biznesu, p. 4) M.K.