Frustration leads bank to offer steel mill liabilities

Deputy director of ING's increased risk investments department, Jacek Baranek, argues that the move was taken as a result of the prolonged negotiations concerning the sale of the company, which has postponed the future restructurization and repayment of liabilities. He adds, however, that the bank is ready to withhold its decision if the restucturization negotiations will begin drawing to a conclusion. The Częstochowa Steel Mill has liabilities of zł.800 million, which according to the restructuring plan are to be converted into shares and sold to a strategic investor. At the moment a Ukrainian company Donbas Steel possesses an exclusive right to negotiations and is to settle the contract before June 17. The president of the mill, Wacław Korczak, says ING Bank Śląski move will not affect the negotiations unless more creditors follow this suit. (Puls Biznesu pp.1,8) M.G.