Netia future hangs in the balance following further losses

The future of independent telecoms operator Netia is in further doubt, following yesterday's publication of its third quarter financial results, which revealed that the company made a net loss of almost zl.900 million in the first nine months of the year. According to Wlodzimierz Giller, an analyst with Erste Securities, unless the operator's Swedish owner Telia provides additional financing, Netia may have to file for bankruptcy. Telia representatives have said the decision on further financing will depend on an assessment of a 10-year business strategy approved by Netia's supervisory board on Tuesday. Although no details of the plan have been disclosed, Giller insists that Netia needs a debt restructuring program. "In order to survive Netia needs to negotiate a deal with all its bond holders. They need to reduce the debt by at least 70%. This is possible as already Netia bonds have reached 20% to 30% of their face value," he said. At the end of September, Netia's total debt stood at over zl.3.53 billion, of which bonds accounted for some zl.3.3 billion. Company spokesperson Jolanta Ciesielska remains positive, insisting that Netia has over zl.615 million on its accounts and that revenues still exceed expenditure. (Puls Biznesu, p. 7; Prawo i Gospodarka, p. 14; Reuters) M.T.K.