December 22, 2012 / 10:56 AM / 5 years ago

Polish builder Polimex clinches deal with creditors

2 Min Read

WARSAW, Dec 22 (Reuters) - Polish builder Polimex has finalised a debt restructuring deal with creditors, the treasury ministry said, under which state industrial agency ARP will acquire a stake and two seats on the board.

Polimex, a leading construction group that is also involved in major state energy contracts, ran into trouble earlier this year after a road-building bonanza left many builders saddled with loss-making contracts and huge debts.

"The successful completion of financial restructuring confirms that the engagement of the state was justified," Treasury Minister Mikolaj Budzanowski said in a statement.

It was not clear exactly how big the ARP stake would be. Earlier this year ARP said it would take up to a third of the shares in Polimex, becoming its largest shareholder.

Polimex said in November that a deal with creditors would include a share issue of at least 250 million zlotys ($80.72 million) by the end of the first quarter of 2013 and a conversion of bonds into another 250 million zlotys of new shares.

Polimex is part of a consortium building two 900-megawatt coal-fuelled units in Opole and a 1,075 megawatt coal-fired unit in Kozienice. Budzanowski said these projects would go ahead without any obstacles.

Polimex said in a separate statement late on Friday that it had called a general shareholders' meeting for Feb. 15.

Draft resolutions for the meeting propose including two representatives from each of ARP and bank PKO BP, one of the company's main creditors, on its supervisory board, which would be extended to seven members. ($1 = 3.0973 Polish zlotys) (Reporting by Marcin Goettig, Editing by Mark Trevelyan)

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