Hortex to return to the black this year after restructuring

The authorities of frozen food and juice producer Hortex anticipate the company's return to profits after four years in the red with sales in the fiscal year ending May 31 expected to have risen to around zł. 350 million, the company announced yesterday. Hortex also announced that it had completed its three year financial restructuring program, downsizing its labor by 3,800 and reducing costs by zł. 100 million a year. Under the plan, Hortex's two creditors, Bank Gospodarki Żywnościowej (BGŻ) and the European Bank for Reconstruction and Development (EBRD) wrote off its zł. 21 million debt. In addition, the company's short-term loans (commercial bonds) were converted into long-term securities while its capital was increased by zł. 50 million. Last week, Hortex secured another zł. 47 million loan from EBRD and BGŻ bought a Hortex bond issue worth zł. 7 million. The maturity period of both instruments is three years. (Puls Biznesu, p. 6; www.onet.pl) J.K.