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Grupa Azoty SAUPDATE: Azoty signs preliminary agreement with banks, may get PLN 1.6 bln in Treasury recapitalisation
Listed chemicals group Azoty signed preliminary directional debt restructuring agreement with financial institutions last week, a market source revealed to PAP Biznes. Within the framework of the agreement, Poland's Treasury is considering recapitalising the group to the tune of up to PLN 1.6 billion (EUR 376.96 mln). According to Azoty's official statement, an agreement on a possible recapitalisation of the company by the State Treasury had not yet been reached.
As part of the signed agreement, the Treasury is considering recapitalising Grupa Azoty to the tune of up to PLN 1.6 billion (EUR 376.96 mln), while financial institutions are considering a medium-term restructuring plan under which the debt will be split into three parts.
The agreement with the banks provides for a debt-for-equity swap, conversion of debt into participation bonds and repayment of debt after five years.
"The plan envisages converting Grupa Azoty's debt into shares in the company, converting the debt into participation bonds and a balloon repayment of the debt after five years," the source told PAP Biznes.
"According to the agreement, Azoty group is to carry out the necessary restructuring, but there is no mention of redundancies," it added.
Azoty has confirmed signing a document with financing institutions summarising the options under consideration as part of the target financing structure. However, in a statement sent to PAP, the group stressed that an agreement on a possible recapitalisation of the company by the State Treasury had not yet been reached.
"We are in discussions with financing institutions regarding systemic, long-term solutions to improve the financial situation of Grupa Azoty. The signed document is a summary of the options currently under consideration regarding the target structure of Azoty group's financing," Azoty stated.
The group added that so far "no agreement regarding a possible recapitalisation of Grupa Azoty by the State Treasury has been reached".
"In the event that a preliminary agreement is reached with the financing institutions regarding the target financing solutions for Grupa Azoty, the company will inform about it in an appropriate current report," Azoty assured.
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