Redan listed clothes distributor will not pay back its debts

opublikowano: 2007-04-30 18:53

Warsaw (Puls Biznesu) - Today, the clothes company from Lodz should pay back PLN 50m (EUR 13.2m) to three banks. It won’t do this hoping that the banks will wait a year and a half longer.

Redan, the listed company distributing and designing clothes, with debts at BRE Bank, Pekao and Millennium amounting to PLN 50m, should pay back the money today. The management is sure, however, that it will manage to sign agreement with the banks to prolong the deadline.
“Two banks have already given a preliminary approval, we are waiting for the decision of the last one”, Bogusz Kruszynski, Redan member of the board said.
Redan believes that the chances to sign a settlement amount to 95 percent.
“We hope the deadline will be prolonged till June 15th at least. We are trying to prolong it till November 2008”, Bogusz Kruszynski added.
The banks will announce their decisions today.
Redan does not have funds to pay back the debts. The company wants to develop its retail network. This year, it plans to launch 20 Top Secret shops, 8 Troll shops and 35 Textilmarkets. Today, the network consists of, respectively 78,35 and 120 outlets. Last year, Redan had PLN 159,000 of net income and PLN 246m of sales.
(PLN 1 = EUR 0.264)