Warsaw
Slows Down

Poland - EU Subsidized Polish Companies Sell For Lack Of Money

Classified Polnews

Warsaw, Poland - 16 June , 2009 Polish companies that were approved to receive EU subsidies are now looking for private investors. They no longer have the necessary capital to continue operations.

While some companies are offering minority shareholder packages, some owners are interested in selling 100% of their shares.

Generally, the underlying reason for the offers to sell is cited as the global financial crisis.

But getting into the details of the sales, it seems that the EU verification process used before approving a company for subsidies was lacking and companies that were approved were more aggressive in their growth plans than they should have been.

One company that is for sale launched out into the residential housing development market and tied up its capital in a now collapsed market segment.

Another company's bank reduced the credit line available. While one more, in the IT sector, is failing because its clients cannot get financing for proposed projects.

Investment firms say that the number of companies approaching them for help is not significant. But what is significant is that they have never been approached by such companies before.

There is no information about how the EU will react to the proposed sales.

For more infomation in Polish, go to Sprzedam firmę z dotacją

If You Did Not Find What You Want Here, Use This Search Box