PKN Orlen may breach loan covenants

PKN Orlen is in trouble again. Constant changes of leadership mean the group has real trouble following a set strategy. Political interference is the key probelm. A change of government means a change at the top for Orlen.

According to ICIS news, quoting ING Bank, Orlen

"could improve its financial health by selling its strategic oil inventories to the Polish state and earning capital on a sale of its 24.4% stake in Polish mobile operator Polkomtel telecom. However, both transactions were unlikely to occur this year, meaning “2009-10 is likely to be challenging for Orlen operationally, and we expect the outlook to worsen", the bank said."