Will merger of mills into Polskie Huty Stali be able to solve industry debts?

Today four big steelworks: Huta Katowice (HK), Sendzimir (HTS), Cedler (HC) and Florian (HF) will legally merge and form one company called Polskie Huty Stali (PHS). This company will control 85% of shares of those steelworks, produce 70% of steel and have a combined annual turnover of zl. 7 billion. The candidates for posts in the management board are: Jerzy Podsiadlo, chairman in HK and HTS, Krystian Kozakowski, deputy chairman in HK and Edward Nowak, deputy chairman in HTS, who masterminded the idea of con solidation. It is hoped that this step will help the steel industry to grapple with its debts of zl. 4 billion. The Industry Development Agency (ARP) will probably buy part of this debt worth zl. 370 million and the remainder will be converted into PHS shares. The total value of PHS is estimated at zl. 916 million. It is possible that these shares will be sold to creditors with the possibility to sell them. Ispat of India and Eur okonsorcjum (Arbed, Usinor, ThyssenKrupp Stahl and Saltzgitter) have d eclared their interest in buying the shares. (Puls Biznesu, pp. 1, 6) A.D.