Polish builder Polimex clinches preliminary deal with creditors
WARSAW Nov 23 (Reuters) - Polish builder Polimex has reached a preliminary non-binding deal with creditors including a share issue, asset spin-offs and deferment of loan payments, the company said in a statement on Friday.
Polimex, a leading construction group in Poland, ran into trouble earlier this year after a road-building bonanza fuelled by European Union funds left many builders saddled with loss-making contracts and huge debts.
The government stepped in September to allow state agency ARP invest 250 million zlotys in exchange for a third of the company.
Polimex said a final binding deal to be signed at some stage would include a share issue of at least 250 million zlotys ($78.77 million) by the end of the first quarter of 2013 and a conversion of bonds into another 250 million zlotys of new shares.
The company also aims to make savings of at least 300 million zlotys in total and sell assets worth at least 600 million zlotys by the end of 2015.
($1 = 3.1737 Polish zlotys) (Reporting by Marcin Goettig. Editing by Jane Merriman)