Polskie Huty Stali registered, debts to become shares, new investments

Yesterday a court in Katowice registered Polskie Huty Stali SA (PHS), a company that now owns four big steel mills: Huta Katowice (HK), Sendzimir (HS), Cedler (HC) and Florian (HF). The Economy Ministry is planning to add Huta Czestochowa to this list, but only if it first meets its current financial obligations. Presently, the State Treasury owns shares in PHS worth zl. 900 million. The management of PHS is preparing the procedures to convert the company's debts into shares. The total debt of PHS's steel mills amount to zl. 3.9 billion, but at present it is difficult to say what part of this could be converted into shares. Creditors include Polish State Railways (PKP) and some coal companies, all of which have debts themselves. PHS management and creditors met and agreed new upon new investment in PHS. These will include the construction of a third continuous casting facility in HK, modernization of the rolling mills in HS and HC, while HF will get a new plating line. The Economy Ministry declared that the Huta Laziska steel mill, which is in danger of bankruptcy, would restart production. (Rzeczpospolita, p. B2) A.D.