Police Chemical Plants in trouble as Pekao halts investments

Pekao has announced plans to stop investing in the Police Chemical Plants (ZChP), one of the largest plants in the sector. The company has until the end of September to pay zł. 60 million back Pekao. According to Paweł Stosio, the director of the Debt Department at Pekao, the reason for such a decision was that the bank had not been given details of the planned restructuring of the chemical sector, and had not received a reply to its offer to execute the restructuring itself. The bank had, therefore, to take these steps, leaving ZChC in an unfortunate position. "We have short term liabilities that we can only handle if we can obtain credit at the bank. We now need zł. 100 million for current activities," emphasized Krzysztof Żyndul, the head of the plant. (Puls Biznesu, p. 5) A.K