Recovery plan for Kompania Węglowa SA

The Council of Ministers has approved “Recovery Plan for Kompania Węglowa SA” prepared by the government’s plenipotentiary for restructuring of the hard coal mining sector. The need to take repair actions at this company results from its dramatic financial situation.

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The financial problems of KW SA are so serious that the company is at risk of total loss of financial liquidity, and it is the biggest mining company in Europe. For this reason, the government has prepared a plan whose aim is to make Kompania Węglowa profitable.

According to the plan, the unprofitable companies owned by Kompania Węglowa SA will be moved to Spółka Restrukturyzacji Kopalń SA in order to discontinue their activity. It will be four mines. In addition, the plan stipulates that the mines which are able to compete on the market will be moved to the newly-established special-purpose vehicle (SPV). It will be formed by nine mines. One company will be sold to Węglokoks SA. It has also been assumed that KW SA will retain assets which are not connected with its mining activity, and they will be sold.

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