Poland chemical privatization firm ZChP still waiting for bailout

Poland’s largest nitrogen phosphorus potassium (NPK) fertilizer producer, Zaklady Chemiczne Police, is still waiting for a zloty (Zl) 150m ($51.4m, €38.7m) state bail out to be approved by the European Commission.

As you can see from the table I recently put together below (click to open), Police is due to be sold by the second half of 2010. The very fact that the group needs a bailout shows it is probably in pretty poor shape. The fact that a loan may not be fast-tracked may place the company’s finances under severe pressure. This might depress its valuation – could be good news for potential investors or bad news if the government withdraws the sale. 

A source told ICIS news: “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.Poland table.xls

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