New Elektrim valuation deals bond-holders stronger hand in negotiations

A new, higher valuation of Elektrim threatens to make its negotiations with its bond-holders more difficult. MCC Partner estimates that the sale of Elektrim could generate as much as zl.8.25 billion. However, analysts consider this valuation, ordered by the judge overseeing Elektrim's dealings with its bond-holders, as highly controversial. "The book value of the company may not necessarily reflect the real value of its assets," commented Marcin Sojka from DM BGZ. The assessment may prove highly unfavorable for Elektrim, since it suggests the company has sufficient means to regulate its debts, and this strengthens the bond-holders position in negotiations. "The company certainly has more property than liabilities, so the termination of debt repayment and attempts to reduce it are outrageous. With such unr easonable behavior by the company, the safest way to regulate the debt is by selling off its property as quickly as possible," said bond-holders' r epresentative, Jarek Golacik. (Puls Biznesu, p. 8) M.K.