On Wednesday (September 25), before midnight, the Rafako management board decided to declare the company bankrupt. An application in this case was submitted to the District Court in Gliwice. The announcement emphasized that the decision resulted from the loss of the ability to perform due obligations. Przemysław Średziński wrote more about this in the article: “One of the key Polish companies filed for bankruptcy. Drastic stock market reaction“.
Rafako files for bankruptcy. In the background, the construction of a heat and power plant
A few weeks earlier, the company announced that JSW Koks interrupted two years of mediation before the General Prosecutor's Office regarding the construction of a heat and power plant in Radlin (Silesian Voivodeship). Built by the company bet was to replace the “Marcel” heating plant built in 1908, which does not meet current standards and is to be decommissioned by 2025.
Rafako CEO Maciej Stańczuk confirmed during a press conference that the actions of JSW Koks were the reason for filing for bankruptcy. – This move deprived us of liquidity. It is sad that such a large and strong State Treasury company, such as a daughter company of the JSW concern, deprives Rafako of the last operating funds that would allow it to survive until the end of the restructuring process – said Stańczuk, quoted by Polish Press Agency.
Rafako's president points to the activities of JSW Koks. He talks about a “hostile step.”
The president of Rafako announced that JSW Koks withdrew the amount of PLN 20 million from the guarantee deposit paid by his company and also demanded payment of a bank guarantee in the amount of PLN 35 million. – The guarantee was a security for the construction of the heat and power plant in Radlin. Bankwhich granted the guarantee, paid these funds at the beginning of the week – he noted in a statement quoted by RMF24.
Stańczuk stated that it was a “hostile step” that deprived his company of its primary source of income and made it impossible to conduct restructuring negotiations with creditors. – As a result, due to the loss of financial liquidity, it became impossible to implement the Rafako management plan, which was to reduce the company's debt so that it would be possible to acquire a strategic investor and, as a result, return to the market – he pointed out.
What's next for the heat and power plant in Radlin? “The project will be significantly postponed”
The president of Rafako assesses the decision of JSW Koks as incomprehensible and unfavorable for itself. – It has generated enormous problems for itself. We were close to completing the project, which was Rafako's responsibility. The remaining synchronization of the block with the network was to take place by mid-November – he noted.
He also stated that the move of JSW Koks will only lead to a temporary improvement in its liquidity situation. – The project, which had a chance to be completed in less than two months, in the current situation will be significantly delayed – even by 2-3 years, with all the negative consequences for the residents of Radlin, who were supposed to be provided with heat – he pointed out. – We do not understand how the main contractor can be thrown out when the project commitment is at 99%. – he added.