Banks may convert PLN 500 mln of KW coal mine debt into equity

"Banks could convert up to PLN 0.5 billion in coal mine KW debt into equity," said deputy Energy Minister Grzegorz Tobiszowski. According to the minister, the conversion would affect a third of KW's debt versus banks, including BZ WBK, BNP Paribas, PKO BP, BGK and Alior. "Talks on the issue were already conducted with BZ WBK's and BNP's foreign owners. And if there is Santander and BNP Paribas, then we have a private investor, hence the issue should be solved, the EC should not question it," Grzegorz Tobiszowski added. The government will turn KW into the new entity PGG on May 1, and the banks expect PGG to have outlook for a "stable future."