Huta Katowice steel mill to request 50% debt reduction
By the end of next week Huta Katowice (HK), a steel mill owned by Polish
Steel Mills (PHS) will officially ask its creditors for 50% reduction in its
debts. However its second biggest creditor, the Industrial Development
Agency (ARP) - soon to become the dominant shareholder and to issue state
guaranteed bonds to help with the mill's financial restructuring - finds
such a solution unacceptable. "We cannot agree to the debt reduction,"
stated ARP president Arkadiusz Krezel, explaining that the State Treasury
would suffer as a result of such a move. Meanwhile, HK's biggest creditor,
Polish State Railways (PKP), is still considering HK's proposal. "We have
yet to decided whether to accept this proposition," said PKP spokesperson
Ewa Zagorska. HK's total debt amounts to zl. 2.5 billion including around
zl. 1.5 billion owed to gas and coal suppliers. If the creditors accept the
proposed deal, PHS could issue bonds worth zl. 1.6 billion that could be
sold to an investor, potentially LNM Holding. (Puls Biznesu, pp. 1, 10;
Prawo i Gospodarka, pp. 1, 4) A.D.