SSN in financial trouble

Just five years after it was founded, Stocznia Szczecinska Nowa (SSN) is facing bankruptcy. The Polish shipbuilder is supposed to get PLN 100-200m (EUR 26.6-53.2m) of capital and PLN 34m of credit. SSN wants its shareholders, i.e. state-owned Agency for Industrial Development (ARP) or KPS corporation, to raise its capital. SSN trade unions want quick decisions and warn with strikes.

According to an ARP source, ARP has decided to agree to increase the capital by PLN 100-200m provided that the shipyard management presents modified restructuring plan and pledges to renegotiate contracts. The shipyard will, however, have to wait for this injection of cash for several months but in the meantime lacks funds to operate and hopes to receive PLN 34m of credit.

The ARP supervisory board did not agree to lend SSN money because there are no guarantees. It will however buy assets from KPS and convey them to the shipyard. The European Commission must approve of this transaction.