Judge quashes bankruptcy motion filed against Elektrim

The Economic Court in Warsaw yesterday cancelled the motion for bankruptcy of cash-strapped energy and telecom concern Elektrim, judging that the company's financial situation did not warrant bankruptcy. The motion had been filed by the company's bondholders, whom Elektrim failed to pay back some euro 479.3 million when the bonds matured last December. The court also ruled that Elektrim and its bondholders are to begin negotiations to reach a settlement. Elektrim President Waldemar Siwak, who testified before the court yesterday, said that in order to pay off the debt the company would have to consider a new share issue, sell-off of assets and taking on new liabilities. He went on to disclose that Elektrim withdrew from the consortium which wanted to take part in the takeover of a 25% share of the G-8 energy group. However, El Dystrybucja, in which Elektrim has a stake, is still interested in the transaction. (Rzeczpospolita, p. B5; Prawo i Gospodarka, p. 3) P.J.