The deal made by Garmond Press is legitimate
The restructuring of Garmond Press included PLN 50 million of its debts. Of this, nearly PLN 13 million was written off, PLN 14 million was converted into shares, and PLN 23.1 million is to be repaid in installments.
The Regional Court in Cracow dismissed the complaints of the Technopol Publishing Agency and ZPR Media. As a result, the decision approving Garmond Press’ arrangement with its creditors is now final. Garmond Press is the third largest press distributor on the Polish market. Last August, the company entered into simplified restructuring proceedings. It applied for a partial arrangement. It covered 33 creditors. They were divided into three groups.
The first included Social Security. Garmond Press is to give it 100 percent of its receivables, or nearly PLN 1.9 million, in installments. On top of that there is interest. The second group, meanwhile, is the press publishers. In total, Garmond Press owes them PLN 13.1 million, of which 45 percent has been written off. The rest is to be repaid by the distributor by January 2024. The last group is the eight largest creditors. Garmond Press’ debts to them reach as much as PLN 35 million. However, the arrangement provides for the repayment of a total of 80 percent of these debts – 40 percent in installments until July 2024 and another 40 percent in the form of shares.
As a result, the following companies have joined the company’s shareholding: Bauer Publishing House, Ringier Axel Springer Polska, Polska Press, Infor PL, Gremi Media, Agora and Technopol Publishing Agency, as well as the Polish Development Fund. They will acquire 48.3 percent of Garmond Press shares. This will provide them with 31.8 percent of votes at the company’s general meetings.