WARSAW Nov 23 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
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
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)