Good news for Huta Sendzimira and PHS

Good news for Huta Sendzimira and PHS

Last week was a crucial week for Kraków-based Huta Tadeusza Sendzimira (HTS) as its creditors were going to vote on a management plan for the repayment of its debts equivalent to $187 million. The arrangement proceedings, initiated by HTS last year, have been the biggest obstacle for the creation of Polski Huty Stali (PHS), which is very essential for the Polish government's steel industry restructuring program. If the creditors of Huta Sendzimira would not accept the management's repayment proposal, PHS could not legally take possession of the mill's shares. Finally on July 10th, the creditors of HTS did agree to write off a certain amount of the company's debt, about 40%, and to accept repayments in instalments over the coming five years for the balance. Consequently the PHS is now expected to become a single company by early 2004. LNM, of course, still looks like the most likely candidate to take over PHS.