Government failure adds to Kędzierzyn's growing financial pressure

Nitrogen plant ZA Kędzierzyn (ZAK) is one of the companies from the heavy chemicals sector, which is very likely to go bankrupt if it does not receive public aid. However, it can only hope for such help after the the strategy to restructure the sector is accepted by the government, which should have been voted through several months ago. ZAK must pay almost zł. 200 million resulting from settlement proceedings and another zł. 151 million to the Polish Oil and Gas (PGNiG) by 2005. "We are in negotiations with PGNiG and our debt to them is no longer growing. However, they are demanding securing their receivables so we might need to pledge some of our assets," explained ZAK president Jerzy Majchrzak. Unless the company receives state aid, than it will have to soon sell part of its assets in order to pay upcoming installments of about zł. 30 million each. (Puls Biznesu, pp. 1, 8) M.M.