Polimex and creditors agree on debt repayment
October 15, 2013
Troubled builder Polimex-Mostostal and its creditors reached an agreement over preliminary terms of the second stage of firm's financial debt restructuring, which sets a deadline for final debt repayment to December 31, 2019, the firm said in a market filing.
"Debt repayment will take place in years 2016-2019 according to a schedule agreed on with creditors," Polimex said. "Interest on financial debt related to credits and bond liabilities will be reduced versus the one currently in force."
Payment of interest on credits and bond-related liabilities for years 2013-2015 will be divided into two parts: Polimex will regularly pay referential rate plus a part of the margin, while the remaining part of the margin will be accumulated and paid in years 2016-2019 in equal quarterly installments, the filing read.
Polimex-Mostostal struck a four-month standstill deal with bank creditors and bondholders on July 25, 2012 and extended it several times until reaching the agreement.