Poland fertilizer firm ZChP applies for state bailout loan

07 December 2009 14:10  [Source: ICIS news]

PRAGUE (ICIS news)--Zaklady Chemiczne Police (ZChP) has applied for a state bailout loan as part of a revised plan to resolve its serious liquidity difficulties, the Polish fertilizer company said on Monday.

State-controlled ZChP had given up on an unsuccessful attempt at securing rescue loans worth zloty (Zl) 190m ($69.6m, €46.8m) from banks backed by loan guarantees from Poland’s Industrial Development Agency (ARP), it added.

Instead ZChP would apply for a loan worth a similar sum directly from the ARP, it said.

ZChP CEO Zbigniew Miklewicz said he expected approval from the ARP next week and hoped that the company could receive the first tranche of funds in December.

This would be in time to meet a final deadline issued by Polish gas monopoly PGNiG for the payment of outstanding gas bills. PGNiG is threatening to dissolve its gas supply contract with ZChP if the bills are not dealt with.

ZChP, meanwhile, added that it was considering a request from the treasury ministry to enter into a close business cooperation with Poland's largest fertilizer producer Zaklady Azotowe Pulawy in advance of a planned joint privatisation in 2010.

($1 = Zl2.73/€1 = Zl4.06)

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By: Will Conroy
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