Head of Polish PBG resigns over unit troubles

Written By Unknown on Selasa, 30 Oktober 2012 | 16.47

Mon Oct 29, 2012 7:30am EDT

* Chief exec quits over Rafako

* Shares fall 17 pct

WARSAW Oct 29 (Reuters) - The chief executive of bankrupt Polish builder PBG quit on Monday after a dispute over control of its key unit Rafako, putting in question PBG's return to financial stability.

Mariusz Rozacki headed Rafako before replacing co-founder Jerzy Wisniewski at PBG's helm in June after it was granted bankruptcy protection.

The group ran into trouble when it was stuck with loss-making contracts from Poland's road building bonanza and had trouble financing the purchase of Rafako when one of its main lenders backed out.

By 1106 GMT, PBG shares fell 17 percent to 4.55 zlotys. The battered stock shed 93 percent this year.

"The market still had hope that a reasonable chief executive will lead the company through bankruptcy so that something would remain," said Arkadiusz Chojnacki, analyst at Ipopema Securities.

"Now this hope is much smaller," he said,

In his resignation letter addressed to Wisniewski, who heads PBG's supervisory board, Rozacki said that after a series of unauthorised transactions the company lost control over Rafako. (Reporting by Chris Borowski; Editing by Louise Heavens)

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