Węglozbyt digging its way out of debt

Węglozbyt, a coal dealer controlled by Kompania Węglowa (KW) and the state (with 70% and 30% stakes, respectively) is promising to pay back 100% of its zł.67 million debt. Today creditors, including KW, Katowice Coal Holding and other minor suppliers, are going to vote on whether or not to enter an agreement with the debtor. Węglozbyt proposes paying the debt in 16 quarterly installments, starting within a year. The company has adopted a restructuring program, is going to sell an office building in Warsaw and plans to establish a chain of 200 coal warehouses throughout Poland, six of which are already operating. Węglozbyt is going to offer coal at a competitive price (zł.450-460 per a ton), compared to private agents. Last year Węglozbyt posted a net profit of zł.8 million on revenues of zł.27.7 million. (Puls Biznesu, p.10) J.L.