Netia proposes debt repayment through new share issue

Bankruptcy-threatened domestic telecoms operator Netia said on Saturday it planned to issue up to 600 million new shares in an attempt to rescue the company. The company announced two shareholders' meetings to be held on February 5 and 19 of this year, during which a decision on the stock issue would be made. Netia's management board predicts that the new shares will be offered to current shareholders and creditors. Due to continuing negotiations, no further details about the issue were disclosed. Netia now has more than $1 billion in debt and failed to make a mid-December interest payment. The company will open itself to possible bankruptcy claims once a 30-day grace period ends next Monday. According to analysts quoted by Gazeta Wyborcza, Saturday's announcement could mean a breakthrough in negotiations between Netia and its creditors. (Gazeta Wyborcza, p. 27, Reuters) P.J.