Poland's ZChP drops Commission restructuring fund application

16 September 2011 17:34  [Source: ICIS news]

LONDON (ICIS)--Zaklady Chemiczne Police (ZChP) has suspended its application to the European Commission for permission to treat awarded state aid as restructuring funds, the Poland-based nitrogen phosphorous potassium (NPK) fertilizer and titanium dioxide (TiO2) producer said on Friday.

A substantial improvement in the company's financial situation, brought about by an improved market environment, and the takeover of the firm by fellow Polish chemical producer Zaklady Azoty Tarnow (ZAT) group, meant the application could be dropped, it added.

The European Commission had considered upgrading a zloty (Zl) 150m ($48.2m, €34.7m) loan provided by Poland's Industrial Development Agency (ARP) to ZChP from “aid” to “restructuring funds”.

The move would provide ZChP with longer and more generous repayment terms, the company said.

Earlier on Friday, the Polish treasury ministry said it was set to suspend an end-of-September relaunch of the privatisation of strategic chemical producers, including ZChP and ZAT.

($1 = Zl 3.11, €1 = Zl 4.32)

By: Will Conroy
+44 20 8652 3214

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