Rafako files for bankruptcy. The president translates

Representatives of the management board of Rafako recalled at the conference on Thursday that a request to declare the company bankrupt was submitted to the District Court in Gliwice. According to the president of the company, Maciej Stańczuk, the actions of JSW Koks were the final reason for this decision, which decided to end the mediation two years before the General Prosecutor’s Office a regarding the construction of a heat and power plant in Radlin.

– JSW Koks collected PLN 20 million from the guarantee deposit paid by Rafako and requested payment of the guarantee in the amount of PLN 35 million. The warrant was security for the construction of a heat and power plant in Radlin. The bank that provided this money paid out at the beginning of the week, he said.

As Stańczuk said, it was a “hostile step” by JSW Koks, depriving Rafako of the company’s remaining income and preventing him from negotiate with creditors regarding restructuring. – As a result, due to the loss of financial liquidity, it became impossible to implement Rafako’s management plan, which wanted to reduce the company’s debt so that it would be possible to get a strategic investor and , as a result, return to the company. market – he noted.

The president of Rafako emphasized that the decision of JSW Koks is even more understandable because it is unfavorable for himself in the long run. – JSW Koks has created big problems for himself. We were close to finishing the project, which was Rafako’s responsibility. the remaining synchronization of the block with the network, which was to happen by mid-November, he noted.

In Stańczuk’s opinion, JSW Koks will improve its liquidity position only “for a while” at the expense of Rafako. – The project, which had a chance to be completed in less than two months, will be significantly delayed in the current situation – even by 2-3 years, with all the negative effects on residents of Radlin, which was supposed to be given. with heat – he added.

Stańczuk reminded that the coke oven gas heat and power plant built by Rafako is to replace the “Marcel” heating plant built in 1908, which does not meet modern standards and it must be closed before 2025. – We do not understand how the main contractor can be thrown out with the participation of the project at 99 percent – he emphasized. According to the president of Rafako, it will be very difficult for the recipient to get a certificate from the new unit without the involvement of the main representative.

The vice-president of Rafako, Cezary Klimont, who was present at the conference, pointed out that the contract with JSW Koks was not registered during implementation, despite the increase in material costs and changes in the project itself.

– When the contract for the construction of a heat and power plant in Radlin was signed 5 years ago, the investment was worth around PLN 250 million. Over the following years, JSW Koks changed the scope of the project, expanding it, and the amount increased to PLN 500 million. This project is not an ordinary boiler sale, but a power plant specially made and highly adapted to the needs of the recipient – emphasized Klimont.

In Klimont’s opinion, Rafako’s loss of liquidity also causes the company to lose credit and, therefore, the inability to obtain a portfolio of new orders that would allow it to satisfy its creditors.

Before midnight on Wednesday, Rafako’s board of directors announced in a stock exchange announcement that they had decided to file an immediate petition for the company’s bankruptcy due to the loss of the company’s ability to fulfill its obligations as they are due. pay

“The Issuer’s Board of Directors (Rafako – ed.) has decided, in the form of a resolution of the Board of Directors, to immediately file a request to declare the Issuer’s bankruptcy due to the Issuer’s loss of capacity performance of the publisher. relevant obligations, which (…) are of a permanent nature and therefore mean that the breach condition has been met (…), “said the company.

In her opinion, accepting the intention to submit a claim now is the only best solution that can protect the interests of both Rafako and its creditors, shareholders and employees.

The company indicated that one of the reasons for such a decision was the inability to “agree with the main creditors of the Issuer on detailed rules for transferring the liabilities of the Issuer to creditors as that to shares in the Issuer’s larger share capital or other position. of restructuring as well as the Issuer’s liabilities towards its main creditors”, which would allow the reduction of Rafako’s debts to creditors. This – according to the company – would allow the company to recover its capacity on external funding to fulfill future orders.

Another reason was identified as “eliminating the possibility of finalizing such arrangements with major creditors (…) within the time required to ensure uninterrupted operational activities”. made (…), as a result of a significant further decline in current liquidity (…) ) due in particular to the conditions reported by the issuer in current report number 41/2024 on September 9, 2024 , announcing the completion of mediation proceedings with JSW KOKS SA.

It was then reported that JSW Koks had completed mediation work with Rafako regarding the construction of a coke oven gas heat and power plant in the coke plant in Radlin (Silesia). The ordering party referred, among others, to: further delay in the implementation of the contract.

The agreement between JSW Koks and Rafako relates to the construction of a cogeneration power unit fired with coke oven gas with a capacity of approximately 32 megawatts of electricity and 37 megawatts of heat.

Rafako is a joint-stock company listed on the Warsaw Stock Exchange; according to information from the management board, most of its shares belong to the bondholders of the bankrupt company PBG. It is a power unit contractor and equipment manufacturer for the energy industry. It is one of the largest employers in the region and – management said – it currently employs nearly 700 people.

Read also: Application for bankruptcy of a large Polish company. Big decline in the stock exchange >>>