Creditors of miner KW may agree to partial debt-to-equity conversion

Grzegorz Tobiszowski, a deputy energy minister told reporters that creditors of ailing state-owned coal miner Kompania Weglowa may convert part of its debt into equity. "We see a possibility that the five banks, which are KW's debtholders convert a part of the debt into a KW stake," Tobiszowski said. Polish banks PKO BP, Alior Bank, BGK, as well as Santander's unit BZ WBK and France's BGŻ BNP Paribas are among the creditors of the company, who purchased ome PLN 1 bln in KW bonds. The government will turn KW into new entity PGG on May 1, and the banks expect PGG to have outlook for "stable future."