Financial difficulties hold up steel sector consolidation

Financial problems may hinder the planned consolidation of the steel sector, with the creation of the Polskie Huty Stali (PHS) steel holding likely to be delayed until the middle of the year. The main reason for the delay is the financial difficulties being experienced by two of the mills that will form the PHS. Creditors of Huta Katowice (HK) have claimed the collateral put forward by the mill as security for its borrowing, while Huta Sendzimira (HTS) is currently undergoing court administrative proceedings. The PHS will comprise five mills, and given that it can be set up only after HK has repaid its debts and the proceedings against HTS are completed, the most realistic date for its creation is the second quarter of 2002. According to Jerzy Podsiadlo, president of both HK and HTS, once the financial restructuring of the sector is completed, privatization proceedings can go ahead, perhaps as early as the second half of 2002. (Puls Biznesu, p. 5) M.T.K.