Reuters: Bankruptcy News: Poland's Polimex seeks share issue to keep afloat

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Poland's Polimex seeks share issue to keep afloat Aug 31st 2012, 18:40 WARSAW | Fri Aug 31, 2012 2:40pm EDT WARSAW Aug 31 (Reuters) - Troubled Polish builder Polimex plans to issue shares worth some 500 million zlotys ($150.68 million) to cover its current funding needs, the company's chief executive, Robert Oppenheim, said on Friday. Polimex is the largest among Polish builders that ran into trouble after bidding wars to tap into motorway-building programme ahead of the Euro 2012 left them heavily indebted and with loss-making contracts. The company posted a 370 million zlotys ($111.50 million) net loss in the first half of 2012 against a net profit of 26 million zlotys a year ago. Apart from the issue, the company also seeks a loan from the state-owned industry development agency ARP but also is considering selling part of its assets. "Selling assets worth 330 million zlotys, a 160 million zlotys loan from ARP, share issue, prepayments for contracts and we have a new life," Oppenheim said, adding that the company does not need an investor to come out of a crisis. Earlier this week, Oppenheim told Reuters the group was in talks with possible new investors and plans job cuts as well as unit spin-offs, striving to keep afloat. Media reports have mentioned Russia's VIS Construction and local rival NDI as likely interested in buying into the company. The group wants to sell units Energomontaz Polnoc and Sefako for at least 200 million zlotys and book 183 million in savings this year. The sellout will also include railway builder Torpol, as Polimex wants to focus on energy projects. Oppenheim said the company already has five offers for Sefako and several for Energomontaz Polnoc. The sector's solvency problems, which already made rival PBG seek bankruptcy protection, took 70 percent off Polimex's value and cost the previous chief executive his job. ($1 = 3.3183 Polish zlotys) (Reporting by Pawel Bernat, Writing by Dagmara Leszkowicz) Link this Share this Digg this Email Reprints

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