Azoty Polyolefins offers creditors a refund of 17%. debts

On Saturday, Grupa Azoty Polyolefins (GAP) proposed an arrangement to creditors under which it would repay them. approx. 17 percent receivables. The total of these receivables is over PLN 6 billion. GAP is building the Polimery Police installation, including: for the production of propylene.

As the company announced on Saturday, the restructuring plan together with the arrangement proposal was entered into the National Register of Debtors. The arrangement proposals concern liabilities with a total amount of over PLN 6 billion and cover entities with receivables exceeding PLN 5 million. According to the arrangement proposal, the value of the receivables will be satisfied in approximately 17 percent, and the primary source of money to repay the debts will be the sale of 100 percent. shares in GAP from Grupa Azoty Orlen. Orlen proposed to buy all GAP shares for PLN 1.022 billion, the proposal is valid until the end of March.

Before this transaction, however, the creditors must agree to the arrangement. “Without restructuring the liabilities covered by the arrangement, it is impossible to carry out the transaction with the investor (Orlen – PAP),” said Małgorzata Królak, president of GAP, quoted in the company's press release. She added that the proceedings for approval of the arrangement have a significant impact on the further operation of the company, as it will allow for the stabilization of the financial situation, the necessary debt relief and full preparation of GAP for the transaction with Orlen.

As reported by GAP, the restructuring would also cover liabilities towards companies from the Grupa Azoty Capital Group with a total value of PLN 1.976 billion, of which the parent company, Grupa Azoty, alone would account for PLN 789.5 million. According to the proposed terms of the arrangement, these receivables are to be satisfied at the level of approximately 4.0%. in the case of Group companies, while for receivables owed directly to the Azoty Group, the satisfaction rate is 0.06%.

The history of the Polimery Police project dates back to the spring of 2015, when the then management board of Grupa Azoty decided to build an installation for the production of propylene using the PDH method with a capacity of approx. 400,000 m3 at the chemical plant in Police. tons per year. The value of the investment was estimated at just under PLN 1.7 billion. In October 2017, it was decided to expand production to include polypropylene with investment expenditure of PLN 4 billion. In March 2019, Hyundai Engineering was selected as the contractor with a budget of no more than EUR 1.52 billion. Grupa Azoty informed then that the investment should amount to PLN 5 billion.

In September 2019, Hyundai Engineering Co. and Korean Overseas Infrastructure & Urban Development Corporation (KIND) agreed to contribute USD 130 million to the project, the new company with Korean contribution was named Grupa Azoty Polyolefins (GAP). The loan agreement with the banks was signed in June 2020. In the fall of this year, the GAP stake was acquired by Grupa Lotos, later taken over by Orlen. In this way, the concern from Płock became a shareholder of this project.

Construction was significantly delayed, and by October 2024 the installation had produced 200,000. tons of polypropylene. The cost of the entire project was then estimated at PLN 7.2 billion. In March 2025, Orlen financed GAP for the purchase of the main substrate – propane. In August 2025, GAP terminated the contract with Hyundai Engineering, charging a contractual penalty of EUR 111 million. On November 29, 2025, GAP decided to conduct restructuring proceedings under the arrangement approval procedure. (PAP)

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