gas in poland, page-12

Hi

I see your point Dex and that would be indeed the ideal scenario but I just don't see any incentive for Transcor to agree on that sort of agreement.

Indeed the problem is Gazonor was acquired for EUR26m with an additional 10m of debt put in place for working capital/capex purpose. I am not sure what this money was used for.

Anyway the debt to be repaid by year end is roughly EUR 38m according to the info in the annual report.

Btw, 26m was already a fairly high price to pay for Gazonor,a company that makes 1-2m profit per year and needs some capex to maintain the operation.But that's another issue.

Now even if we assume the company decides to offer Transcor most of Gazonor CMM operations, I would expect Transcor not to agree because they think they can get 100% of Gazonor for eur 26m through the pledge they have in place with EGL. Plus they could then get most of the remaining assets the assets at the end of year for the 12m.

This is my take on the current situation.

What I am not sure of is whether or not the 36m+interest loan is pledge against Gazonor only or both Gazonor and the other assets. Do you have a clue?

Also do you know if they are any rules in Australia or in France to protect the distressed company, some sort of chapter 11 rule that will give more time for the company to solve the debt issue?


Bart