PBG to pay off creditors by 2020

Construction company PBG, in bankruptcy reorganization proceedings, has filed a debt restructuring plan to court, the firm said in a statement on Tuesday. It stipulates for the satisfaction of all creditors by 2020. PBG’s creditors were divided into seven groups, to be paid off successively between December 31, 2015, and June 30, 2020. Small creditors (up to PLN 500,000) will be paid off at a single moment, on June 30, 2016. They will receive the total amount owed. The remaining groups of creditors will receive installments totaling to 8-21 percent of the amounts due. In the case of creditors who are major shareholders in PBG, liabilities will be converted into new issue shares in the companies. Shares will also be offered to the largest group of creditors, who represent financial institutions.