Bloomberg News

Polimex Shares Drop to Lowest in Eight Years on Debt Talk Report

July 19, 2012

Polimex-Mostostal SA (PXM) slumped to an eight-year low after Puls Biznesu reported Poland’s second- largest construction company is still in talks about a four- month delay in paying back its debts.

The shares lost as much as 9.1 percent to 0.6 zloty, and traded 7.6 percent weaker to 0.61 zloty, the lowest level since July 2004, at 9:38 a.m. in Warsaw.

Bank Gospodarki Zywnosciowej SA (BGZ), controlled by Rabobank Groep, doesn’t want to sign a standstill agreement, while as many as 95 percent of Polimex’s remaining creditors are ready to join the deal, the newspaper reported, without saying where it got the information. Polish builders saw earnings decline and debt soar as costs of building stadiums and roads for the European soccer championships increased.

The bank’s press office declined to comment, Puls said. Polimex has 250 million zloty ($74 million) of debt due this month, according to the newspaper.

To contact the reporter on this story: Piotr Bujnicki in Warsaw pbujnicki@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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