Polimex-Mostostal agreed and signed an annex to the restructuring agreement with Creditors.

On 25 October this year, the Board of Polimex-Mostostal signed an important annex to the restructuring agreement with Creditors, which puts into effect the second phase of the financial restructuring of the company and defines an action plan aimed at recovering the company's stable financial situation. This will allow uninterrupted operation and service of the debt due to Creditors.

- Signing the Annex is a success crowning complex and lengthy negotiations with the creditors of the company - Gregor Sobisch said, the CEO of Polimex-Mostostal SA

- This means that the Creditors have accepted the plan to rescue the company, as developed and presented by the management. Signing the annex confirms that Polimex-Mostostal regains the ability to develop operations and rebuild its credibility as a business partner - Gregor Sobisch added.

The arrangement with Creditors allows us, in particular:

-          to conduct business operations,

-          to continue the restructuring process,

-          to complete contracts under implementation and

-          to acquire and launch new, profitable orders.

- The annex to the agreement with creditors opens up, among others, the possibility of obtaining bank guarantees for new projects, including a big contract for the construction of two power units at the power plant in Opole. Obtaining guarantees shall enable the launch of the, crucial fot the Polish energy sector, contrat. The gross value of it amounts to PLN 11.5 billion. The share of Polimex-Mostostal is 42% - Robert Bednarski said, the Vice President, Chief Financial Officer of Polimex-Mostostal SA.

Arrangements contained in the annex (regarding e.g. rescheduling the debt, the acquisition of guarantee line and cash through the sale of assets, and - in the case of approval of the shareholders – the issue of shares, as well as debt-to-equity conversion) will allow the company to recover liquidity needed, among others, to complete the contracts that are in progress, including road construction contracts. The acquired financial resources will enable the full mobilization of financial strength and speed up work on road construction contracts, in particular, the construction of the A1 Stryków - Tuszyn and A4 Rzeszów - Jarosław sections.

 - The Company, as a result of the agreements with Creditors, gained the ability to continue its extensive restructuring measures involving, among others, further reducing overhead costs following the sale of assets not belonging to the core business, including separated part of business and real estate sales packages. The signed annex also allows the company to develop their engineering and technology in profitable areas designated as strategic ones, including energy, petrochemicals and industry. The company is actively looking for new, profitable orders not only in Poland, but also abroad - Joanna Makowiecka, the Vice President of Polimex-Mostostal SA, adds.

Convening the Extraordinary General Meeting by the Board on November 12, 2013, is an important part of the plan agreed with the Creditors. The Extraordinary General Meeting of Shareholders, in particular, aims to increase the share capital and to allow conversion of debt into share capital, subject to the approval of Shareholders.