Poland’s Azoty Seeks 83% Debt Writedown in Polymer Restructuring

Grupa Azoty SA seeks to settle just about 17% of debt taken to build the biggest propylene and polypropylene complex in central and eastern Europe.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Grupa Azoty SA seeks to settle just about 17% of debt taken to build the biggest propylene and polypropylene complex in central and eastern Europe.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Poland’s state-controlled fertilizer manufacturer said in a statement it has filed a restructuring plan, asking creditors to agree to a substantial debt writedown on the 6.1 billion zloty ($1.7 billion) in liabilities of its Polyolefins SA unit. The proposal aims to clear the way for the sale of the troubled plant to Orlen SA, following a 1.02 billion-zloty offer from the country’s energy giant last year.The facility, designed to diversify Azoty’s portfolio into plastics used in packaging and automotive industries, has been beset by overspending and a legal standoff with its contractor and part-owner Hyundai Engineering Co. Ltd. The investment hasn’t been fully completed and still operates with a limited capacity.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.“The plan is fundamental to the company’s future operations, as it will allow us to stabilize our financial standing, achieve necessary debt relief, and fully prepare the unit for the transaction with Orlen,” Malgorzata Krolak, head of Polyolefins unit said in an email. “Without debt restructuring, completing the transaction with the investor is impossible.”Struggling with net debt reaching 4.3 billion zloty Azoty has spent two years negotiating the potential deal with group of lenders including Bank Pekao SA and the European Investment Bank. High prices of natural gas as well as fierce fertilizer competition from neighboring Russia and Belarus added to the challenges.Beyond the disposal of its 65% stake in Polyolefins, Azoty aims to secure 600 million zloty via a share sale to the State Treasury to bolster its balance sheet after three consecutive years of losses.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.