V&W looks for banks willing to take over its debt

As the banking sector is going through tough times and aren't willing to trust, men's clothes producers Vistula & Wólczanka (V&W) is looking for three to four banks which could take over its debt of zł.250 million. The firm has until end of March 2009 to do so.

"The situation is exceptionally difficult for both sides. On the one side, V&W is in a very difficult situation when it comes to liquidity, and on the other hand banks are significantly undercapitalized," said an anonymous analyst. "I think it will be very hard for V&W to find an institution willing to take over its debt. The margin may be higher by 3.5 to 4 percent, which would mean the company will not show profits for the coming few years," the source added. (AO)

Source: Puls Biznesu