Hortex saved from bankruptcy by 11th hour agreement with shareholders

Majority shareholders in Hortex, Polish juice and frozen foods producer, yesterday came to an understanding aimed at saving the company from bankruptcy. The shareholders, Bank Handlowy, Warsaw branch (BHW), Bank of America, BGZ and the European Bank for Reconstruction and Development (EBRD) have signed a deal with regard to the financial restructuring as well as changes in the shareholding structure of Hortex. The shareholders have decided to extend until the end of 2002 the payment deadline for trade bonds worth over zl. 200 million, which would assure the company financial liquidity.The Hortex board has issued a statement that BHW and Bank of America have decided to purchase the BGZ stake in the company, almost 30% of all the shares. According to Robert Pydzik, vice-president of BGZ, any further prolongation of the talks would eventually lead to Hortex's bankruptcy. The banks which purchased BGZ's stake will inject Hortex with a short-term loan of zl. 35 million. This sum is vital, as it will allow the company to purchase the unprocessed foodstuffs needed for next year's production. (Puls Biznesu, p. 10, Rzeczpospolita, p. B1) M.T.K.