Treasury entangled in potential Sudzucker litigation

German Sudzucker is threatening to sue the Treasury Ministry if it reneges on an agreement signed in May 2000 for the acquisition of 7 sugar plants of Lubelsko-Malopolska Spolka Cukrowa. Sudzucker has pledged to invest around zl. 360 million in the privatization of these plants, and has already signed agreements on social and employment packages. The Ministry is still deliberating over the sale, pending a new bill which comes into force on August 23rd, under which all remaining unsold sugar plants will join the Polski Cukier partnership, jointly owned by the Treasury, plant-workers and sugar beet farmers. The representatives of Sudzucker claim that they have fulfilled their side of the agreement, and are therefore ready to sue the Treasury Ministry. Meanwhile, the Ministry is also facing the threat of a similar suit by French Saint Louis, with regard to the delayed sale of Slaska Spolka Cukrowa. (Gazeta Wyborcza July 28-29. p.25,) M.M.