Will Elektrim swop debt for equity, or opt for bankruptcy

The future of Elektrim is being hotly debated by analysts after it pulled out of a life-saving debt restructuring deal on Monday. The majority of analysts believe that Elektrim will declare itself bankrupt, while a handful argue that it can still be saved. "I'm convinced that the bondholders will not want to sit around the negotiating table again. Filing for bankruptcy is only a question of time," said Magdalena Lapsa, an analyst with SG Securities. Upon hearing the news, Elektrim's bondholders said that they would stand firm over the agreement, but were willing to be more flexible with the second debt repayment installment due in December. "We could possibly renegotiate this part of the deal," said Joshua Hertz, the bondholders' spokesman. While analysts are warning that Elektrim's shareholders cannot count on receiving any money if the company goes under, the former president of Elektrim, Waldemar Siwak, still believes that the bondholders will return to talks and that the company could possibly do a debt for equity deal. The market was nervous, with the value of Elektrim shares plummeted 39% yesterday. Meanwhile, the main shareholder in Elektrim, BRE Bank is also beginning to feel the squeeze, as its shares dipped 12% on the Warsaw Stock Exchange. (Puls Biznesu, pp. 1,7; Prawo i Gospodarka, p. 3; Reuters) A.D.