Under the agreement, Zakłady Chemiczne Police undertook to pay off its debt, together with further interest, by 30 June 2010. The parties also agreed that starting from November 2009, current invoices for gaseous fuel will be paid by ZCh Police by 31 January 2010.

PGNiG SA has again agreed to extend the deadline for the payment of liabilities on account of deliveries of natural gas in recognition of ZCH Police's difficult situation. It also hopes that this new extension (the fifth) will help ZCH Police to emerge from its current impasse. ZCH Police will undoubtedly also be helped in doing this by individual assistance granted by the Industrial Development Agency. The chemicals company has also undertaken to prepare a restructuring plan, which will be presented to PGNiG SA by 31 January 2010.

The following security has been established for the unpaid liabilities:

- a pledge over a set of movables comprising the equipment of the Nitrogen Plant - Ammonia Division, which constitute a part of the pledgor's business undertaking;

- a pledge over a set of movables comprising the equipment of the Nitrogen Plant - Ammonia Storage and Distribution Division, which constitute a part of the pledgor's business undertaking;

- a capped mortgage on the real properties on which the Nitrogen Plant - Ammonia Division and the Nitrogen Plant - Ammonia Storage and Distribution Division are located.

The understanding is subject to the condition that the Parties conclude, by 18 December, a new comprehensive agreement on the sale of 310 m cubic metres of gaseous fuel per annum with a term of 12 months starting from 20 December 2009.

Joanna Zakrzewska

 Press Spokesperson PGNiG