Wiesław Różacki yesterday resigned from the position of the CEO of the troubled builder PBG. He will be replaced by Paweł Mortas, who has been working for the group since 2010.

In June, PBG – one of Poland’s leading construction firms – filed for bankruptcy with the possibility of an arrangement with creditors. Mr Różacki was the man who was supposed to put the giant back on its feet. According to his statement published yesterday, the main reason for his resignation was the fact that PBG lost control over its key subsidiary, Rafako, after a series of transactions that he did not authorize.

Investors took the news as negative for the future of PBG. After Mr Różacki announced his decision, the group’s shares plummeted by more than 25 percent on the Warsaw Stock Exchange. The stock price rebounded only slightly later during the day to close at -23.64 percent.

Poland A.M.