Wednesday, June 6, 2012
PBG, Builder of Polish Soccer Arenas, Seeks Bankruptcy
Tue., June 5, 2012
PBG SA (PBG), Poland’s third-largest builder, decided to file for bankruptcy to help reach an agreement with creditors to cut debt by as much as 31 percent, Bloomberg Businessweek reported. PBG, which helped build three out of four stadiums for European soccer championship that kick off in Poland and Ukraine this week, is proposing to honor 69 percent of its debt to creditors owed more than 1 million zloty ($282,700), 80 percent to those owned from 100,000 zloty to 1 million zloty and 100 percent for those owned lesser sums, the company said in a regulatory filing today. The company, which specialized in oil and gas engineering, ventured out of its core business to bid on arena and motorway deals after Poland was selected to co-host the Euro 2012 soccer championship, only to see its debt swell on falling margins. PBG said negotiations with banks remain at an “impasse” that prevent the company from fulfilling its contracts. “This bankruptcy is going to have a big negative impact, not just on banks that are financing PBG and on its subcontractors, but on the whole economy,” Robert Maj, an analyst at KBC Securities in Warsaw, said today by phone. PBG’s unconsolidated debt, which doesn’t include the borrowings of its unit, amounts to 1.5 billion zloty, Chief Financial Officer Przemyslaw Szkudlarczyk said via a video conference Monday. The entire group’s debt at its 12 crediting banks is at 1.7 billion zloty, Kinga Banaszak-Filipiak, a spokeswoman, said at the conference.