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Nov 08, 2023

Polish boiler maker Rafako scraps bankruptcy filing plan

GDANSK, Feb 9 (Reuters) - Polish boiler maker Rafako (RFK.WA) said on Thursday

GDANSK, Feb 9 (Reuters) - Polish boiler maker Rafako (RFK.WA) said on Thursday it was abandoning earlier plans to file for bankruptcy after several favourable changes to its situation.

Rafako cited recent developments relating to its dispute with Polish utility Tauron's (TPE.WA) production unit over the construction of a coal-fired power plant in Jaworzno.

Both firms said on Tuesday they had agreed to refrain from pursuing respective claims over the building of the plant until March 8 and to work on reaching a final settlement by then.

In January, Rafako said it was planning to file for bankruptcy, a day after Tauron (TPE.WA) demanded 1.3 billion zlotys ($295 million) from a consortium including Rafako which was responsible for building the Jaworzno plant.

Tauron had said it was faulty.

Rafako subsequently filed counter-claims against Tauron and disputed its claims for damages and fees. The boiler-maker was concerned they could impact its ability to conduct business operations and find to an investor.

($1 = 4.4006 zlotys)

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