Holding company of PZL Mielec placed in receivership

Published: 6/9/1999

An economic court in Rzeszow has placed the WSK SA aircraft company, the parent company of the Mielec-based holding WSK “PZL Mielec" SA, into receivership. The board of the company had sought bankruptcy with the backing of both the government and the trade unions. Mr Ryszard Grochowski, Head of WSK SA, confirmed that the company has stopped servicing its debts, amounting to over 100m zlotys, made up of unpaid taxes, insurance premiums workers" back wages. This amount is well above company"s estimated value of 92m zlotys($23.1m). WSK SA employs 283 people, with 173 currently on temporary leave. Mr Grochowski said that the bankruptcy would help clarify the situation of the group as a whole. In March 1999, the court declared the biggest WSK SA-owned company, the aviation plant PZL Mielec, to be bankrupt. It was replaced by Polskie Zaklad Lotnicze (PZL), which reduced the workforce from 2700 to 1200 in the process.

Article ID: 568