Polimex says state agency to buy new shares at max PLN 0.5 each

Written By Unknown on Jumat, 12 Oktober 2012 | 16.47

WARSAW | Fri Oct 12, 2012 1:50am EDT

WARSAW Oct 12 (Reuters) - Polish state-run agency ARP wants to buy new shares in the beleaguered local builder Polimex at up to 0.5 zlotys (15 cents) per share, the company said, offering creditors the chance to convert their outstanding debt into shares valued at up to 0.6 zlotys each.

ARP, which also has an option to buy subscription warrants for new Polimex shares valued at up to 0.5 zlotys each, agreed to spend no more than 250 million zlotys ($79 million) to buy a stake of up to 33 percent to aid the troubled company.

Creditors already agreed to waive interest payments until the end of November to give Polimex time to restructure its 2.5 billion zloty debt. They were now offered to swap debt into shares valued below their 0.66 zloty Thursday closing price.

Current Polimex shareholders will vote on the proposals on Monday.

The builder, valued at 349 million zlotys, is the largest of dozens of Polish construction groups to run into trouble after Poland's motorway bonanza ahead of the Euro 2012 soccer tournament turned sour, leaving builders deeply in debt.

In a series of moves to avoid the fate of fellow builder PBG , which has been in bankruptcy protection since June, Polimex signed a vital 6.3-billion zloty power deal and already secured a lifeline loan from ARP.

The agency, despite possible problems from EU regulators over state aid, said earlier this week it would be interested in buying the Sefako and Energomontaz Polnoc units that Polimex put up for sale. ($1 = 3.1604 Polish zlotys) (Reporting by Adrian Krajewski; Editing by Eric Meijer)

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