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)

For more on fertilizers visit ICIS pricing fertilizers
Read Paul Hodges’ Chemicals and the Economy blog
To discuss issues facing the chemical industry visit ICIS connect

By: Will Conroy
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly