A fall from the very top
ConstructionPOLAND Back in December last year, the management of Hydrobudowa Polska, part of Grupa PBG, wrote to the company's shareholders and investors. The letter began: Having assessed the current financial condition of Grupa HBP, we can say that we are in good shape, while the prospects of the market which we operate in provide the basis for looking to the future with optimism. However, in June this year the contractor of such projects as the National Stadium in Warsaw, the PGE Arena in Gdańsk, the Municipal Stadium in Poznań and the A1 motorway, announced that three companies from Grupa PBG, PBG, Hydrobudowa Polska and Aprivia had decided to file for bankruptcy, subject to arrangements, with creditors at the Poznań district court.
On June 21st, the court declared the bankruptcy of one of them, Hydrobudowa Polska, final. However, this is not the end of the company's operations. The bankruptcy declaration in this form, says Weronika Piluchowska of the Góralski & Goss law firm, does not exclude the possibility of continuing the company's business activities as it creates better prospects to implement the arrangement. In this case the proposed arrangement involves the partial repayment of creditors and the conversion of the outstanding debt into shares in the company, she explains.The troubles continueThe reasons for filing for bankruptcy were related to negotiations over financing for the group, according to a PBG announcement. The court acceded to the request to declare the bankruptcy of PBG subject to arrangements. Immediately, shares in Hydrobudowa shot up by 20 pct and those of PBG by app. 15 pct. However, more bad news emerged just a day later, when Nordea Bank Polska, BZ WBK, HSBC and Raiffeisen Bank Pol
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