Will PEC pipe plant purchase bail out SSPH's sinking shipyard business?

The firm's management stressed, however, that the amount might turn out to be lower, as banks have seized ships along with obligations. SSPH has also proposed a 40% debt reduction. Furthermore the management, among other plans, wants to use its most healthy subsidiary, Porta Eko Cynk (PEC), a producer of steel goods for the fuel and energy sectors, to purchase the parent company's pipes factory for a maximum of zł.50 million. It is planned that PEC would be floated in 2005 and collect zł.30 million from the floor, with some shares in the company being given to employees in exchange for outstanding wages. However, Arkadiusz Krężel, president of the Industrial Development Agency, threw scorn upon the idea, commenting, "I do not suppose that the banks' creditors would agree to the proposals." (Puls Biznesu, pp. 1, 8) M.M.