Poland’s troubled Kompania Weglowa’s (KW) management and its 13 trade unions have signed an agreement, which enables transferring KW mines to KW’s restructured incarnation PGG.
Sides have agreed that the so-called 14th salary will be suspended for the period of two years, while other elements of remuneration, including the annual December bonus and payment in kind, as well as employment terms will be left intact. By January 1, 2018 at the latest a new collective labor agreement is to be signed.
KW CEO Tomasz Rogala said the agreement with unions opens door to setting up PGG.
“It is a very important day as it enables completing investor processes, preparing the entire documentation and launching PGG,” Rogala said.
Next Tuesday KW will organize a meeting with prospective PGG investors, banks financing KW, social side as well as KW and PGG managements, during which an agreement setting up PGG will be signed.
Energy Minister Krzysztof Tchorzewski said banks financing KW are expected to declare they expect KW debt to be repaid “no sooner than in seven years counting from today.”
On Monday deputy Energy Minister Grzegorz Tobiszowski said banks could convert up to PLN 500,000 in coal miner KW debt into equity. The banks include BZ WBK, BNP Paribas, PKO BP, BGK and Alior.
Mid-March power groups PGE and Energa as well as heat & power firm PGNiG Termika, a unit of natural gas group PGNiG, filed preliminary non-binding offers to invest in total up to PLN 1.5 billion in PGG.
Means from investors will be used for investments aimed at making new coal deposits with high-quality coal available and for machinery, Rogala also said on Tuesday.
Business plan for PGG envisages reaching break-even point in late 2017.
