EU delays approval of loan for Poland’s Zaklady Chemiczne Police

26 March 2010 17:34  [Source: ICIS news]

PRAGUE (ICIS news)--Zaklady Chemiczne Police (ZChP) is “limping along” following the European Commission’s refusal to fast-track approval of a state aid loan worth zloty (Zl) 150m ($51.4m, €38.7m), a source at the Polish company said on Friday.

“They tell us this is a complicated case, that they have more questions and that the decision may now not be issued for another two months,” said a source with ZChP’s investor relations department.

The company, Poland’s largest nitrogen phosphorus potassium (NPK) fertilizer producer, had expected the loan, which was earlier awarded by Poland’s Industrial Development Agency (ARP), to be approved by Brussels in the first few weeks of this year, ZChP said.

ARP fast-tracked approval of the loan late last year to assist ZChP with its ongoing battle for financial survival.

The company has been facing liquidity problems, which it said were greatly aggravated by the economic downturn, and difficulties in securing commercial bank loans.

ZChP is scheduled for privatisation this year.

($1 = Zl2.92/€1 = Zl3.88)

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By: Will Conroy
+44 20 8652 3214

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