Shipyard needs life preserver from treasury

The investors are likely to raise its capital by zł. 500 million but under one condition: that the Treasury helps to settle its debts. Gdynia Shipyard has about zł.1 billion of debts, half of which would be paid by investors and the other half by the Treasury. The shipyard will have to wait until 2007 to receive funds from the treasury, however, and will receive them in the form of shares from companies owned by the State. This will increase the shipyard's capital by a total of zł. 515 million, but the question of whether or not the company will last until this injection of funds remains. The shipyard's financial situation is currently dire, and it will not receive funds from investors in the short term as they are also awaiting the European Commission's opinion. The Commission is concluding a study on the shipyard's reconstruction programs, with a view to present its opinion in November, although it is likely that this date will be also pushed back to February. The company is currently trying to find the money to survive until its receives help from the Treasury and potential investors. (Puls Biznesu, p.10) M.M.