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ISD Huta Czestochowa, a bankrupt Polish steel mill, will be put up for sale by bankruptcy administrator, reported Puls Biznesu.
A meeting of the company’s creditor committee, scheduled on 17 March, will discuss the current phase of the bankruptcy proceedings, according to the Polish language report, which quoted bankruptcy administrator Mateusz Bienioszek.
Bienioszek expects that the creditor committee will give recommendations regarding the further course of proceedings, including the terms of an auction.
At present, Huta Czestochowa is leased by Poland’s industrial investor Sunningwell International, which has a pre-emptive acquisition rights. The lease agreement with Sunningwell is valid until September, thus an asset evaluation and an announcement of a tender for the sale of the steel mill to a new investor are necessary, the report noted.
Sunningwell President Marek Frydrych was cited as confirmed the company’s interest in acquiring the steel mill's assets, adding that the final decision depends on the assets valuation.
Industry sources were cited as saying Huta could achieve a valuation similar to the price determined last year before the company's bankruptcy, when its former owner - the Ukrainian industrial group ISD, was trying to sell it. The valuation reached about PLN 230m (USD 58.2m), but at that time Sunningwell was ready to pay PLN 240m (USD 60.7m), according to the report.
Metinvest, belonging to Ukrainian billionaire Rinat Akhmetov, could be a one of potential bidders for Huta, according to the report citing unofficial information.
Frydrych fears that competitors, wanting to buy access to the market, may offer more than last year's valuations. Potential buyers currently have the opportunity to buy the assets of the steel mill that is functioning. This is thanks to the activities of Sunningwell, as Huta did not work last year, the report noted.
Link to original source (report behind paywall)
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