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Grupa Kapitałowa Grupa Azoty
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The Management Board of Grupa Azoty Polyolefins, a subsidiary of Grupa Azoty, has decided to initiate restructuring proceedings under a Restructuring Approval Procedure (PZU), with the arrangement date set for 28 November 2025. This decision follows the company’s loss of ability to service its current liabilities and was preceded by an analysis of available corrective tools intended to enable the company to continue operating.
The purpose of the PZU is to conclude an arrangement with creditors, which will allow Polyolefins to continue its operations by settling liabilities towards creditors, stabilising its financial position, and protecting the interests of employees, business partners, creditors, and shareholders.
A formal restructuring of the company’s debt is one of the conditions included in the non-binding offer submitted by Orlen on 15 October regarding the acquisition of all shares in GA Polyolefins. Conducting the PZU is also intended to facilitate coordinated creditor responses to arrangement proposals, including those related to the Orlen offer.
‘The objective of the proceedings is to organise the company’s project-related debt and reach an agreement with creditors so that the company can function in a stable manner, and the continuation of the Polimery Police project becomes realistically possible. At the same time, a formal debt restructuring is one of the conditions included in Orlen’s non-binding offer of 15 October to acquire 100% of Polyolefins shares. Coordinating discussions with the company’s creditors and the course of proceedings will allow us to take a decision on the Orlen offer, which we will communicate to the market in the appropriate report,’ says Andrzej Skolmowski, President of the Management Board of Grupa Azoty.
The Polimery Police project has not been completed, and repeated installation failures have halted production and, consequently, the sale of products that represent the company’s primary revenue source. Moreover, repairing the effects of these failures as well as completing and commissioning the installation require additional financing, which Polyolefins is unable to secure due to its current financial position.
In addition, the Management Board of Grupa Azoty Polyolefins has submitted a petition to the court to declare bankruptcy, while simultaneously requesting that the court suspend its examination until either an application for approval of the arrangement is filed, or the arrangement proceedings are lawfully discontinued.
‘Our focus is on restructuring measures that will allow GA Polyolefins to continue its operations. The submission of a bankruptcy petition is a formal requirement and does not imply actual bankruptcy,’ explains Skolmowski.