TPSA on edge of having to make major debt repayments

The dominant domestic telecoms operator TPSA, may have to face a demand for to make an immediate payment of zl.12.8 billion, warns TPSA auditor, Andersen Consulting. In the opinion to its report for the TPSA group for 2001, Andersen stresses that, according to the management board of TPSA, there is a risk that the company may not complete one of the financial requirements set out in some credit agreements, namely too high net debts in relation to net profit increased by depreciation (EBITDA), which will mean it may have to immediately pay zl. 12.8 billion of long term debt. The TPSA management board hopes to reach a compromise with banks. At the end of last year the EBITDA indicator was 2.42, and according to the agreement with banks, it cannot exceed 2.5. Analysts from ING Barings also pointed out the very high debts of the company when recommending the sale of TPSA shares. From yesterday's report on the company prepared in according to International Accountancy Standards, it results that the company recorded a profit of zl. 544 million in 2001, almost three times less than in 2000. According to Polish Accounting Standards, TPSA recorded a net profit of zl. 183 million in 2001, which is 86% less than a year ago. (Rzeczpospolita, p. B2), M.T.