Bad debts, golden handshakes lower Mol value
Tuesday, February 1, 2005, 07:01
Russian oil giant Yukos owes Mol Rt bad debts resulting from 2004 sales, the latter announced. Consequently, the company deems it necessary to set up a cash reserve for the 2004 business year, totaling less than Ft 10 billion. Moreover, the group expects an additional cost of Ft 25 billion in severance pay resulting from the collective contract of its employees, which warrants a higher than average severance package in comparison with other companies. Meanwhile, Mol has taken steps to lower the amount of severance pay to bring it closer to the market average and the legal minimum, offering to pay a more reasonable sum in advance.