Polish construction industry was supposed to grow thanks to Euro 2012. Meanwhile one of the largest developer groups is falling apart and Warsaw's National Stadium is the direct reason to it.
Starting Monday dramatic visions started to arise in Warsaw. Even a possibility of subcontractors blocking the opening game of Euro 2012 has been announced. Though authorities assure no such risk exists, situation of both the main contractor and his cooperators seems tragic.
Hydrobudowa and its mother company Grupa PBG filed a notion to Poznan's court to announce bankruptcy. Hydrobudowa is the leader of consortium that delivered the new National Stadium and this large project seems to be the direct reason for company's fall, though its situation has been weakening for some time due to several other Euro-related projects.
Hydrobudowa supposedly owes some 100m zloty (€23m) to its subcontractors and blames the investor of National Stadium, NCS, for the financial problems. NCS supposedly evades paying for additional works. The holdup in payments for comissioned works may cause other, smaller companies to fold.
To make it even worse, both Hydrobudowa and PBG's shares have plunged way into the red on Warsaw's stock exchange on Tuesday, reaching all-time low. And finally, NCS demands a massive compensation of 309m zloty (€70m) for delivering the stadium almost one year behind schedule. Hydrobudowa has 10 days to pay, but already announced it has no intention to. According to the company delays were caused by the investor who made some 14,500 changes (!) to the initial design of the venue.