Kompania Weglowa to have zl. 10 billion of liabilities written-off

The government confirmed on Tuesday that it would consider giving state-owned shares totalling up to even $966 million in listed companies to the newly created coal holding Kompania Weglowa as part of a capital boost. This is the latest move in a long-delayed reform of the ailing sector, which merges 24 state-owned coal mines, which produce half of the domestic annual 100 million ton output and employs 85,000. "The most likely option is to raise the holding's capital with shares held by the State Treasury," said Deputy Economy Ministry Marek Kossowski, declining to refute press reports that the effort could cost zl. 3.7 billion. The holding will have zl. 10 billion of liabilities written-off due to the debt restructuring bill and a further annulled zl. 2.5 billion of "ecological" liabilities. (Puls Biznesu, pp. 1, 5; Reuters) M.M.