Reuters: Bankruptcy News: Polish builder PBG seeks $60 mln in state aid -agency

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Polish builder PBG seeks $60 mln in state aid -agency Sep 4th 2012, 13:23 WARSAW, Sept 4 | Tue Sep 4, 2012 9:23am EDT WARSAW, Sept 4 (Reuters) - Stricken Polish builder PBG is seeking a 200 million zlotys ($60 million) loan from state-controlled industry development agency ARP, its chief executive was quoted as saying on Tuesday, as the company battles to stay in business. "We will amend our motion to ARP by the end of this week," state agency PAP quoted Wieslaw Rozacki as saying. PBG is the biggest Polish builder to run into financial trouble in the wake of Poland's 20 billion euros spending spree to upgrade its infrastructure ahead of the Euro 2012 soccer tournament, a programme that featured fierce competition for contracts between local and foreign builders. At its peak worth some $1 billion, the group is now valued at just $22 million after it ran into solvency problems partly because it took on deals with razor-thin margins to build motorways, only for prices of building materials to soar. PBG, in bankruptcy protection since June, posted a 1.7-billion zloty net loss for the first half of the year, after huge writedowns took their toll in the sector, hitting also PBG's top rivals Polimex and Budimex. ($1 = 3.3303 Polish zlotys) (Reporting by Adrian Krajewski; Editing by Mark Potter)

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