PHS seeks public funds from the State Treasury

Polish Steel Mills (PHS) are preparing to use the public aid funds and, "On Tuesday the management will decide about sending an application to the State Treasury about increasing the share capital in the company," said Andrzej Krzyształowski, PHS spokesman. The Treasury told Puls Biznesu that the issue of providing state aid to the concern was unquestionable, as the investor would enter PHS next year and the time for using it would finish in December. At present company's capital amounts to zł. 900 million. According to the plans, the sum would be decreased by zł. 800 million and afterwards increased to zł. 1.6 billion through converting liabilities into shares with 2:1 parity. The plan might however be modified due to PHS liabilities towards Industrial Development Agency (ARP), which exceed zł. 350 million. The company will have to repay zł. 500-550 million to the Agency by 2007, but is unknown how the operation would be carried out. The problem is that PHS creditors are not satisfied with the plans and wish the company receive a zł. 400 million loan from PKO BP. (Puls Biznesu, pp. 1, 10) M.M.