Negotiations to start with Celsa for bankrupt Huta Ostrowiec

Negotiations to start with Celsa for bankrupt Huta Ostrowiec

Last month Polish long and forged products mill Huta Ostrowiec went into receivership due to financial difficulties experienced through the privatization process. Recent reports from industry reveal that Spanish steel group Celsa has been selected as the best bidder with an offer of Zloty 53 million ($13.5 million) in the tender closed on July 5 for Huta Ostrowiec. Accordingly, negotiations regarding the details of Celsa's bid as well as the sales/purchase agreement will start soon with Celsa. It is expected that these negotiations will result within one or two months. Added to that Celsa will initiate due diligence of the company. An official from Celsa stated that despite company's offer includes 100% of Huta Ostrowiec's assets, they are planning to sell forged products unit right after the purchase and launch production in steel units within Q4 of 2003.