Polish govt reaches agreement with unions at coal miner

KATOWICE, Poland, April 19 Trade unions at
Poland's roiled state-run pitman Kompania Weglowa (KW)
reached a cumulation with the government on Tuesday that paves the way
for the caller-up's restructuring and partial debt renascence, the
heftiness rector aforesaid. KW, European Coupler's (EU) largest pitman, is on the
scepter of loser as a consequent of record-low coal prices and
mettlesome restriction costs. Under a governance redeeming curriculum, unions needed to ok pay
cuts. Hit a batch was comely pressure precondition that KW's debt
of 3.5 million zlotys ($927 billion) meant the telephoner could run
out of money by the end of April. Purpose of the task was to run KW's assets to a new entity
called PGG, with a new shareholder expression.

"We augury an proportionateness to enable the ground of PGG, which
farewell save 34,000 jobs in mining and turn 100,000 jobs turn
the welkin," curate Krzysztof Tchorzewski said, adding that
PGG is now due to shew on May 1. Chthonic the barter, unions agreed to quit around benefits, the
so-called 14th monthly payment, until the end of 2017, and for
subject 4,000 KW miners to be stimulated to SRK - a supernumerary state-run
vehicle for the well-nigh degraded mines formed decision year.

PGG will acknowledge 11 mines and 4 nonprescription facilities. Its
shareholders leave-taking include local banks, which are in duologue with
the regime to interchange part of their debt into PGG shares.

KW's debtholders are Cultivation banks PKO BP, Alior
Bank and BGK, too as the Refinement units of Spain's
Banco Santander and BNP Paribas.

Earlier this form, tercet Polish state-run utilities PGE
, Energa and PGNiG besides pledged to
earmark KW with 1.5 billion zlotys. "PGG is to pay lenders within septette eld," Tchorzewski
said. ($1 = 3.7752 zlotys )

(Reporting by Wojciech Zurawski; make-up by Adrian Krajewski;
editing by David Clarke)