Huta Katowice risks receivership as banks threaten to block its accounts

A consortium of creditors of Huta Katowice (HK) plans to block HK accounts on Monday, according to unofficial sources explored by Puls Biznesu. HK has no money to repay its debst to Pekao S.A., Bank Handlowy, Kredyt Bank, Bank Slaski, Powszechny Bank Kredytowy and Bank Przemyslowo-Handlowy, totaling some zl.357 million. Aware that such an action would unavoidably put the company into receivership, HK labor unions began a hunger strike, demanding that the Treasury Ministry protect the steel mill. Thus far, Economy Minister Janusz Steinhoff only „politely asked the banks to negotiate delays of payments.” HK management wants the banks to wait until April. If they refuse, which is very likely, the management has decided it will not pay them, because such an outflow would leave the company without operating funds. (Puls Biznesu, p.7) M.K.