Huta Katowice may halt production without a quick fix

The beleaguered Huta Katowice (HK) steel mill may have to halt production as early as next week if it does not secure a capital injection soon. According to unofficial sources, during the latest talks between HK representatives and deputy Treasury Minister Barbara Litak-Zarebska no agreement was reached, compounded by the fact that banks disappointed with HK's lack of prospects are no longer willing to sink money into the ailing mill. However, HK authorities are still hopeful and expect the government to look into the matter next Tuesday. According to experts, the failure to obtain support is no surprise since the HK board of directors has proposed several unpopular ideas concerning the increase of the company's equity. The board would like the Treasury to hand over shares it owns in other WSE listed companies to the mill, thereby increasing the company's capital. HK may yet be saved by CVRD, a Brazilian concern which has expressed interest in the mill. Observers say however that the Brazilians are interested in HK only in order to retrieve money for their iron ore deliveries. (Prawo i Gospodarka, p.4)