Polish contractor files for bankruptcy

Polish contractor Katowickie Przedsiebiorstwo Budownictwa Przemyslowego (Budus) has filed for bankruptcy in the District Court of Katowice.

The company, which gave no reason for its change of fortunes in its bankruptcy petition, has meanwhile also filed a lawsuit against the Polish City of Lodz seeking to change or terminate a contract for the design and construction of a new stadium in the city.

Budus was part of a consortium that was awarded the PLN218 million (€53 million) Lodz Municipal Stadium & Sports Hall contract in February this year.

The lawsuit seeks to change the conditions of the contract, or terminate it, in the light of “the extraordinary change of circumstances resulting from the significant deterioration of the overall situation in the construction market, and consequently, the loss of opportunities for external financing of the project, resulting from the concluded agreement.”

In its bankruptcy petition, Budus is seeking to reduce claims against it by 40% and pay its debtors in 20 instalments. The contractor reported a second quarter net loss of PLN 80,000 (€44,000) on revenues of PLN104.8 million (€25.7 million), compared to a net profit of PLN2.5 million (€600,000) and revenues of PLN93.4 million (€22.9 million) for the same period last year.

The news comes after Polish contractor Hydrobudowa was forced into liquidation earlier this month. It is facing penalties over the construction of the Warsaw National Stadium in the country's capital.