Reuters: Bankruptcy News: Polimex CEO wants Polish builder to return to profit in 2013 -paper

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Polimex CEO wants Polish builder to return to profit in 2013 -paper Oct 9th 2012, 05:39 WARSAW | Tue Oct 9, 2012 1:39am EDT WARSAW Oct 9 (Reuters) - Polish builder Polimex is likely to return to profit next year as it targets asset spin-offs and a new deal with creditors as ways to save the troubled company, its chief executive Robert Oppenheim was quoted as saying on Tuesday. "Income from disinvestment and a share issue will ensure business resources, which together with operational restructuring will make Polimex a company again booking positive results and operating cash flows starting from 2013," the CEO told daily Parkiet in an interview. Oppenheim added he hoped to reach a debt restructuring deal with banks and bondholders "within three weeks" after they have already waived interest payments to give Polimex time to restructure its 2.5-billion zloty ($796 million) debt. He did not exclude further write downs this year. Polimex is the largest of dozens of Polish construction groups to run into trouble after Poland's motorway bonanza ahead of the Euro 2012 soccer tournament turned sour, leaving builders deeply in debt. The group plans to sell its Sefako and Energomontaz Polnoc units, from which it expects to book at least 300 million zlotys next year, when it may also spin off railway construction unit Torpol. On Oct. 15 shareholders will decide on the builder's future when they meet to vote on its plans to issue shares worth some 500 million zlotys to secure financing. In a series of moves to avoid the fate of fellow builder PBG , which has been in bankruptcy protection since June, Polimex signed a vital 6.3-billion zloty power deal and secured a lifeline loan from state development agency ARP. ARP is key to Polimex's survival. It plans to buy a stake of up to 33 percent in the company, and on Friday told Reuters it was interested in the two units the group has put on the block. ($1 = 3.1403 Polish zlotys) (Reporting by Adrian Krajewski; Editing by Daniel Magnowski) Link this Share this Digg this Email Reprints

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