Netia fails to make interest payments on long-term bonds

Netia Holdings II BV, an affiliate of the telecom firm Netia, has failed to pay over zl. 50 million in interest due on two kinds of bonds that mature in 2009. The deadline to pay the obligations passed on January 14. Netia is currently holding talks with the bondholders to decrease the interest and capital on the debts. "Having assumed that these talks would take place, Netia decided to freeze payments on interests from these bonds," the company announced in a statement. Netia's bondholders may formally submit a petition for bankruptcy to a court after January 15, 2002, as Netia made a unilateral decision to freeze interest payments. On January 11 Netia's management board announced two shareholders' meetings to take place in February regarding a decision on the emergency issuing of up to zl. 600 million in H series shares. (Puls Biznesu, p. 4) M.T.