Netia, the Polish telecom group, has seen its bonds collapse in value after Telia, its biggest shareholder, refused to promise to inject vital new capital into the group.

Telia, the incumbent Swedish telecom operator which owns 48.7% of Netia, said in its latest six-monthly report that it has written off &quotremaining goodwill on the Netia shares&quot. Telia valued the goodwill at SKr1.82bn (€195m).