Is Glimar Refinery a lemon in Grupa Lotos' pack?

The planned inclusion of three southern refineries into the Lotus Group may turn out to be a Pyrrhic victory for the holding. According to a report prepared by Ernst & Young (E&Y) it transpires that the Glimar Refinery, one of the three to be acquired by Lotos, is heavily indebted. The auditors refused to sign the financial report prepared by the directors of Gorlice-based Glimar. In their account, Ernst & Young stressed that Glimar does not fulfill clearly specified financial requirements demanded by various loan agreements, and that it lacks finances for the realization of its largest investment, Hydrokompleks. The report also revealed that the company's short-term financial liabilities exceeded its assets by zł. 90 million at the end of 2002. Members of Glimar's board did not want to comment on the report. Nonetheless, Krzysztof Mering, Nafta Polska's spokesman, Glimar's largest shareholder was optimistic. "The account was prepared several months ago. Since then, the company's situation and perspectives have improved considerably," he said. (Puls Biznesu, p. 5) K.Z.