Redemption of bankruptcy proceedings

On 8 August, the Board of Polimex-Mostostal SA was informed of rulings issued by the District Court for the Capital City of Warsaw, the Economic Court, X Economic Division for Bankruptcy and reorganization, on redemption of pending insolvency proceedings and cancellation of preserving company assets in the form of establishing a temporary court supervisor, in particular:

·        redemption of bankruptcy proceedings as a result of withdrawal by PHU Plast-Bud, Mr. Zdzisław Sówka, his application for bankruptcy declaration of the company,

·        redemption of bankruptcy proceedings and cancellation of preserving He company’s assets in the form of establishing a temporary court supervisor, as a result of withdrawal by Mr. Zbigniew Joźwiak his application for bankruptcy declaration of the company.

On 30 July 30, Polimex-Mostostal signed an annex to its restructuring agreement, providing the company with the ability of effective functioning. Following the agreement with creditors, the company, among others, obtained a guarantee line that will enable acquisition and implementation of new contracts.

Simultaneously, Polimex-Mostostal is carrying out restructuring activities. As a result, a holding structure is being created. The principal holding competences will include specialized engineering, design activities in the energy and petrochemical industries with a large share of own workmanship and service activities.

Polimex-Mostostal is the largest Polish construction company. It maintains a high level of orders through the implementation of several major contracts, including two being key to Polimex-Mostostal, but very important for the Polish energy sector: the construction of a power unit in the Kozienice Power Plant, with a total value of PLN 6.3 billion, and the construction of two power units in the Opole Power Plant, with a total value of PLN 11.5 billion. In both contracts, the share of Polimex-Mostostal is approx. 42%.