Huta Katowice persuading creditors to take stake in HK Long subsidiary

Representatives of Huta Katowice (HK) steel mill management met last Friday with its creditors, including Bank Przemyslowo-Handlowy (BPH), Powszechny Bank Kredytowy (PBK), Bank Handlowy, Pekao S.A., Bank Slaski, and Kredyt Bank, to discuss their taking a 6% stake in the company's subsidiary HK Long. If the banks agree to the stake and persuade the remaining creditors to take another 13% in the subsidiary, then HK can expect that its $65.6 million debt will be converted into a stake in HK Long. Additionally, if the banks accept Huta Katowice's proposal, British-Dutch Corus Group and the European Bank for Reconstruction and Development (EBRD), which are to participate in HK Long's privatization, will be more willing to agree to an investment in the subsidiary, which could translate into as much as $132 million over the next five years. (Puls Biznesu, p.5)