Shareholders vote to keep Stalexport alive to restructure subsidiaries, debts

Shareholders of industrial capital group Stalexport have decided that the company will continue to exist despite negative financial results. Company president Emil Wasacz told Reuters that, as a result of losing its credit rating due to unprofitable investments in 2000, the company created zl.706 million in reserves, and after the first half of 2001 these were increased by an additional zl.49 million. According to the president, debt-restructuring proceedings with the creditors, to be approved in February 2002 together with a restructuring of subsidiary companies, offer a chance to improve the financial standing of the company. Stalexport has been involved in failed ventures in the steel sector for the past two years, and has also guaranteed loans exceeding zl.800 million for subsidiaries. The settlement proposed to its creditors by the company includes debts worth zl.607 million, leaving an outstanding amount of zl.251 million. (Prawo i Gospodarka, p. 9) P.W.