Stalexport to sign debt reduction proposal today in meeting with creditors

According to Puls Biznesu, it is probable that the creditors of Katowice-based publically listed steel company Stalexport, who are in debt to the tune of zl. 605 million, will sign the approval of a settlement during their meeting today in Katowice and will agree to reduce their outstanding debts. Stalexport's creditors took a decision on May 10 in London to accept proposed debt reduction measures. The current arrangement assumes that the debts are to be reduced by 40%, or zl. 242 million, with the remaining zl. 363 million to be paid within five years. "Stalexport's creditors have practically no choice but to vote for the settlement. Any other course of action may lead to bankruptcy," said Eliminar brokerage analyst Michal Blach. The company's main creditors are the State Treasury, the European Bank for Reconstruction and Development (EBRD) and the Merkury Investment Fund. The company's losses for the last year, yet to be approved by the Management Board, amount to zl. 189.8 million. (Puls Biznesu, p. 4) M.T.