KHW-PGG merger partially approved by labor unions

Some of the KHW labor unions have signed the agreement that will allow two state-owned coal miners Katowicki Holding Węglowy (KHW) and Polska Grupa Górnicza (PGG) to merge. The rest of the unions have till Wednesday morning to make their decisions regarding the deal. Deputy ENergy Minister Grzegorz Tobiszowski said that he hopes that by Wednesday morning all involved parties will sign the document. “I hope that on Wednesday at 10 AM, we will be able to say that we can bring this agreement to investors and banks, who are the remaining parties involved in this deal.” The details of the deals have not been announced yet. The merger will basically incorporate KHW into PGG in order to save the fledging company. KHW has unpaid matured bonds worth over PLN 1 billion.