State Treasury approves restructuring for Huta Czestochowa

The Treasury Ministry (MSP) has approved the restructuring plan of steel mill Huta Czestochowa (HCz) and thus creditors will exchange HCz liabilities for shares in the company. The partnership will first decrease its share capital, which amounts to zl. 370 million, and then will increase it once again. In the second phase creditors will be allowed to take over stock, whose value would range from zl. 100 million to over zl. 300 million. The company's creditors, who are owed about zl.800 million, have consented to the plan. The steel mill is also renegotiating its debt terms. It has been confirmed that two foreign steel concerns, Finnish Rautaruukki and Austrian Voest Alpine Stahl, are considering entering HCzl. Potential investors will certainly be interested in the greatest possible remission of Hcz debts. The company counts on forgiveness of 40% of debts, which would cost the creditors about zl. 120 million; one of the creditors, Weglozbyt, does not agree to such conditions. HCz is the third largest domestic steel producer, with an annual output of 1 million tons of steel. In the first eight months of 2000, the company's turnover totaled zl. 800 million, with losses of zl. 25 million. (Puls Biznesu, pp. 1, 8)