Black clouds have been gathering over the Tarnów chemical works for some time. Debts have been growing and had reached PLN186.5m by the end of last year yet are now PLN340m. Management therefore decided to beat its creditors to the courts and has requested proceedings that would give creditors the chance to reduce the debt. On 12 June a court agreed to this request.
A representative of the chemical works told us anonymously that this was the only way of saving the works. Creditors have six months to get their claims into the court.
Both the Police and Kędzierzyn chemical works have requested a deal with creditors. The Police works had PLN700m in debts which within three years it was able to reduce to zero.
Kędzierzyn owed PLN321.5m three years ago which creditors agreed to reduce by 15 percent and which are now being paid in six monthly instalments. PLN200m still remains to be paid. It will be paying back this debt until 2005 but now needs PLN100m for on going operations. It cannot count on its own resources as it is losing money and it is clearly not going to be able to borrow it.