Reuters: Bankruptcy News: UPDATE 1-Polimex CEO says secures debt deal with creditors-TV

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UPDATE 1-Polimex CEO says secures debt deal with creditors-TV Jul 25th 2012, 08:15 Wed Jul 25, 2012 4:15am EDT * CEO says reached deal with creditors, banks * Polimex got four extra months for pending payments * Conversion into shares may be part of debt restructuring (Adds more detail, background, updates shares) WARSAW, July 25 (Reuters) - Troubled Polish builder Polimex has begun debt restructuring with its creditors that gives it more time to make payments and could include a conversion of debt into shares, its chief executive said on Wednesday. TVN CNBC channel quoted CEO Konrad Jaskola as saying banks and other creditors agreed to give four extra months to Polimex, which had repayments of almost 300 million zlotys ($86 million) due in July alone. "Our debt restructuring process has begun," Jaskola told the channel. "Debt conversion into shares is among the options viewed." Shares in the battered former blue chip, which is to hold an official news conference at 0800 GMT, soared as much as 18 percent. Polimex, which pegs its total debt at almost 2.5 billion zlotys, now has time to renegotiate its borrowings with 14 banks, including Poland's top two PKO BP and Pekao . "This is very good news," IDM SA analyst Andrzej Bernatowicz said. "The market was very sceptical and the consensus was Polimex would not secure agreement," he added. Polimex, its major local rival PBG and dozens of smaller construction companies are facing financial troubles after a bidding war for contracts to build roads for the Euro 2012 soccer championship Poland co-hosted with Ukraine. The deals they signed gave them razor-thin margins, which were eaten up by the rising cost of materials, leaving the firms carrying a loss on the projects. Deputy Prime Minister Waldemar Pawlak raised the possibility of providing some form of state aid for the sector, but the idea was countered by Finance Minister Jacek Rostowski and Prime Minister Donald Tusk. State aid would likely fall foul of European Union regulators who monitor violations of competition rules. ($1 = 3.4818 Polish zlotys) (Reporting by Adrian Krajewski and Pawel Bernat. Editing by Jane Merriman) Link this Share this Digg this Email Reprints

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