Hortex runs out of juice with chronic solvency problems
Banks crediting Hortex Holding have blocked the accounts of the juice
producer, after Bank Gospodarki Zywnosciowej (BGZ) failed to sell Hortex
shares to other shareholders. Selling shares by BGZ was a condition of the
expected bond issue that was to bring the company some zl.200 million.
Hortexs chronic solvency problems are the result of the failure of the
companys new financial recovery method, which was based on medium- and
long-termfinancing agreements signed last year with five banks. In 1999, the
main Hortex shareholder, BGZ, suddenly limited its credits to Hortex by
zl.70 million and Pekao S.A. demanded return of zl.100 million in advance of
the due date. (Puls Biznesu, p.3) M.T.
