Stalexport gets a grip on its debts with new bond issue

Stalexport's bank creditors are getting ready to convert the company's liabilities into securities and take over 80% of its planned share issue. Under the agreement between Stalexport and Pekao SA, Bank Handlowy, Bank Millenium, BPH PBK and Bank Zachodni, 35% of the company's total zl. 607 million liabilities would be converted and go to the creditors, while 40% of the quota due would be written off. According to Stalexport chairman Emil Wasacz the operation would allow it to pay 25% of its total liabilities. At the moment around 30% of Stalexport is controlled by the European Bank for Reconstruction and Development and 14% are held by PKO BP. (Rzeczpospolita, p. B1; Gazeta Wyborcza, p. 20; www.onet.pl; www.pulsbiznesu.pl) J.K.