PIA Piasecki shares tumble, but legal proceedings stopped

On Friday a local court in Kielce admitted that it had made a mistake by informing the media about a motion for bankruptcy proceedings against PIA Piasecki, a top construction company. It has been learnt that the proc eedings against PIA Piasecki have since been called off, and its subsidiary, PIA Piasecki Budownictwo, has reached an agreement with its creditor. However, on Thursday, company president Piotr Mroczkowski revealed that he is expecting further such charges. Despite this, the initial bad news has caused the company major headaches. The value of company shares has been severely hit, falling by 37% alone on Friday's trading session, to reach a record low of 79 groszy. In the short term the impact of all this could mean that Piasecki will have problems securing new contracts. The news will certainly not help its consortium bid, with Belgian Besix, to win the lucrative tender to build the Zlote Tarasy a flagship development in the heart of Warsaw, worth over zl. 1 billion. (Puls Biznesu, pp. 1, 7) M.M.