Stalexport shareholders agree first step in debt restructuring program

In the first step of a major financial restructuring, shareholders of metals trader Stalexport have decided on a reduction in the company's capital. By agreeing to cut the face value of Stalexport shares from zl.10 to zl.2, the shareholders have effectively lowered its capital from zl.128.34 million to zl.25.67 million. Stalexport, with annual turnover of zl.1 billion, has massive debts of around zl.800 million. The company hopes to persuade its creditors to agree to a 40% reduction in its debt, with 25% to be redeemed in cash after five years. Marek Czyz from Stalexport says a deal could be signed next month. Subsequently, at a shareholders meeting in June, ag reement could be given for a further issue of 75 million to 90 million shares, which could be taken over by the financial institutions, mainly banks, that are Stalexport's creditors. (Puls Biznesu, p. 9; Rzeczpospolita, p. B4) A.Z.