Today the European Commission approved a decision to grant public aid to Zakłady Chemiczne “Police” S.A. The Industry Development Agency will grant 150 m PLN in aid to ZCh “Police” in the form of a loan.

The aid will be paid out by the Industry Development Agency /IDA/ directly after singing a previously negotiated contract and once the Company has established securities for the benefit of the IDA. The funds obtained in this form will be used as expenditure related to conducting core activities.

ZCh „Police” SA, which currently finds itself in a difficult financial situation, requested for public funds to be granted in the fourth quarter of 2009. In mid-December of last year the Commission asked that the submitted documentation be completed and additional documents be presented to the European Commission by the end of March. From then on the European Commission had two months to make its final decision, which constitutes the grounds for the IDP granting the public aid to the ZCh “Police”. All the enterprises applying for public funds in all the member states need to undergo the same procedure.

The European Commission /EC/ decision presented today is excplicit – the IDA can grant aid funds in the amount of 150 m PLN, which Zakłady Chemiczne „POLICE” SA applied for. The loan granted ought to be repaid within 6 months. Zakłady Chemiczne „POLICE” SA will be able to apply for an extension of the aid funds repayment, provided that they present the EC with a reliable and detailed restructuring plan. The management board of “POLICE” SA is just finishing work on drafting the plan. The restructuring plan is going to be submitted to the Supervisory Board and to the State Ministry of Treasury in mid-July.

- The decision taken by the EC today is good news to all of us. We have been waiting for the aid for a long time. Now we should make every effort to efficiently implement the drafted restructuring plan, ensuring that it provides stable profitability of the company – president of ZCh “Police” SA, Z. Miklewicz said.