Netia stock plummets as company seeks debt settlement

Telecom operator Netia will put forward a motion in court today to arrange a debt-relief settlement with its creditors. Netia is proposing to reduce its mushrooming $900 million debt by 90% through installment payments to be made over the next 10 years. Management decided to turn to the courts due to the company's dramatically negative financial results and a law which, in this case, forces them to do so. "As our capital in the last quarter of 2001 was in negative figures, we have to either put forward a motion to arrange a settlement or declare bankruptcy," said Netia spokesperson Jolanta Ciesielska. Netia's general shareholders' meeting has been postponed until March 5. Yesterday the Warsaw Stock Exchange (WSE) temporarily suspended trading in Netia, while New York's NASDAQ suspended the stock indefintely. On the WSE trading resumed after several hours and the company's shares fell by 17.8% to zl. 3.55, while in New York the final price was $1. (Puls Biznesu, p. 8; Rzeczpospolita, p. B1; Prawo i Gospodarka, p. 1) A.K.