Polimex-Mostostal continues restructuring of the Romanian Coifer

Polimex-Mostostal focuses on profitable business projects in industry construction. The company reorganizes its own Capital Group and continues to reduce operating costs. 

- This program includes continuous Group's structure simplification and reduction of its operating costs. For this purpose, multiple actions are performed, such as:

- the sale of companies not included in the core business,

- elimination of special purpose companies which have already completed projects,

- liquidation or reorganization of companies that are not profitable and do not indicate the prospects for conducting profitable business in the future.

- Paweł Szymaniak informs, the spokesman of Polimex-Mostostal SA. 

As a result of the economic downturn, the effects of which are also being felt on the Romanian construction and installation market, and the due lack of a sufficient number of profitable orders, Coifer - a company wholly owned by Polimex-Mostostal - was in serious financial difficulties. Effective steps taken in order to restructure and strengthen the company's finances have not yielded the expected results. After the analyzes of the current situation and the future prospects of the company, its management, in consultation with the Board of Polimex-Mostostal, has been forced to make the decision to initiate the procedure of Coifer’s bankruptcy with the possibility of reorganization. 

- This decision, on the medium and long term, will reduce the costs of functioning of the Group on the Romanian market. In such particularly bad financial situation of Coifer and no real prospects for attracting new profitable contracts, there is no justification for the continued operation of the company. Its liquidation will not significantly affect the income statement of Polimex-Mostostal. Coifer’s value was written down to zero in the books of Polimex-Mostostal at the end of 2012. However, the potential costs associated with the suretyships and loans granted to the company by Polimex-Mostostal were considered as appropriate reserves of the financial statements of Polimex-Mostostal for 2012 - Dariusz Krawczyk says, the acting Chairman of the Board of Polimex-Mostostal SA