Netia debt-for-equity deal drags on
Holders of defaulted bonds oppose delay in repayment talks
Elektrim told bondholders it would not have enough time to prepare for a court-appointed meeting with its creditors, expected within 30 days, a representative of the holders of Elektrim's defaulted bonds said Friday.
The troubled telecom and power conglomerate, which defaulted on 480 million in bonds in December, was ordered by a Warsaw court in January to start repayment negotiation talks with bondholders, who filed for the company's bankruptcy.
Jarek Golacik, speaking on behalf of the majority of bondholders, said it appeared Elektrim was trying to slow down the pace of its court-ordered settlement proposal. The vice president of London-based asset management firm Centaurus Capital added that bondholders would oppose any delay.
Ewa Bojar, Elektrim's spokeswoman, declined to comment.Elektrim's Chief Executive Officer Dariusz Jacek Krawiec, Deputy CEO Jan Rynkiewicz, and the firm's legal counsel met with the bondholders' attorneys last Monday in London to discuss repayment. Bondholders repeated their call for full and prompt remittance of the debt, Golacik said, though Elektrim did not discuss any repayment plan options.
"It is unclear to us what that means because in the absence of any proposals it's a declaration," Golacik said. "Elektrim's management sees it as more of a process to discuss things and that's not the best for us because we could sit down (now) and nail out an agreement for bondholders." He added that bondholders expected a second meeting in London this week.Bojar said she could not comment on the meeting because Elektrim is listed on the Warsaw Stock Exchange (WSE). She also declined to confirm when the next meeting would be, adding that, "it's not important if there will be two or three meetings during the week, (but) we are (negotiating)."
In total, Elektrim owes zł. 2.33 billion ($555 million) to 124 creditors.
Elektrim told bondholders it would not have enough time to prepare for a court-appointed meeting with its creditors, expected within 30 days, a representative of the holders of Elektrim's defaulted bonds said Friday.
The troubled telecom and power conglomerate, which defaulted on 480 million in bonds in December, was ordered by a Warsaw court in January to start repayment negotiation talks with bondholders, who filed for the company's bankruptcy.
Jarek Golacik, speaking on behalf of the majority of bondholders, said it appeared Elektrim was trying to slow down the pace of its court-ordered settlement proposal. The vice president of London-based asset management firm Centaurus Capital added that bondholders would oppose any delay.
Ewa Bojar, Elektrim's spokeswoman, declined to comment.Elektrim's Chief Executive Officer Dariusz Jacek Krawiec, Deputy CEO Jan Rynkiewicz, and the firm's legal counsel met with the bondholders' attorneys last Monday in London to discuss repayment. Bondholders repeated their call for full and prompt remittance of the debt, Golacik said, though Elektrim did not discuss any repayment plan options.
"It is unclear to us what that means because in the absence of any proposals it's a declaration," Golacik said. "Elektrim's management sees it as more of a process to discuss things and that's not the best for us because we could sit down (now) and nail out an agreement for bondholders." He added that bondholders expected a second meeting in London this week.Bojar said she could not comment on the meeting because Elektrim is listed on the Warsaw Stock Exchange (WSE). She also declined to confirm when the next meeting would be, adding that, "it's not important if there will be two or three meetings during the week, (but) we are (negotiating)."
In total, Elektrim owes zł. 2.33 billion ($555 million) to 124 creditors.
