19 November 2009 12:14 [Source: ICIS news]
The decision would be effective 30 days after its imminent notification to ZChP, PGNiG added in a statement.
In September, ZChP, which is battling to remain solvent, signed an agreement with PGNiG to settle outstanding liabilities of around zloty (Zl) 125m ($45.6m, €30.5m) by 15 October. The two parties subsequently agreed to extend this deadline to 15 November, said PGNiG, adding it had now rejected a request from PGNiG for a second extension to the end of December.
ZChP said it planned to deal with its liabilities to PGNiG as soon as possible by obtaining loans of Zl 190m from Polish bank PKO BP. The loans application had been held up by a dispute with trade unions over how many job losses should be included in a restructuring plan required for the approval, it said.
“The information that PGNiG has decided not to prolong the deadline has hit the market by surprise, as during Monday's [financial results] conference ZChP management seemed confident it would be extended,” said Wood & Company investment bank analyst Barbara Zaleska.
ZChP also produces titanium dioxide (TiO2).
($1 = Zl2.74, €1 = Zl4.10)
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