Rafako cited recent developments relating to its dispute with Polish utility Tauron's production unit over the construction of a coal-fired power plant in Jaworzno.

Both firms said on Tuesday they had agreed to refrain from pursuing respective claims over the building of the plant until March 8 and to work on reaching a final settlement by then.

In January, Rafako said it was planning to file for bankruptcy, a day after Tauron demanded 1.3 billion zlotys ($295 million) from a consortium including Rafako which was responsible for building the Jaworzno plant.

Tauron had said it was faulty.

Rafako subsequently filed counter-claims against Tauron and disputed its claims for damages and fees. The boiler-maker was concerned they could impact its ability to conduct business operations and find to an investor.

($1 = 4.4006 zlotys)

(Reporting by Karol Badohal, Mateusz Rabiega and Patrycja Zaras; Editing by Tomasz Janowski and Alexander Smith)