Polish Polimex signs debt extension deal with banks
WARSAW Oct 14 (Reuters) - Poland's troubled construction group Polimex won a life saving deal with its lenders who agreed to give it until the end of 2019 to pay off its debt, the group said.
Polimex was one of the main casualties of the road construction boom that left many builders saddled with a huge debt pile after they underestimated their own expenses and rising prices for materials.
Polimex clinched a previous rescue deal nearly a year ago under which state agency ARP injected 150 million zlotys ($49 million)to gain control of the company and banks agreed to convert some debt into equity and would have until the end of 2016 to pay off the remaining 144 million in bonds.
But the builder failed to meet some of the financial conditions of the deal, forcing it to renegotiate the agreement.
Polimex agreed to sell off some real estate by the end of the year to raise more than 200 million zlotys.
It also agreed to a cost-saving plan and sell-off non-core assets to get at least 600 million zlotys.
So far its asset sale raised 258 million zlotys.
Polimex will also convert some of its remaining debt into equity. ($1 = 3.0920 Polish zlotys) (Reporting by Chris Borowski)
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