December 1, 2016 / 1:00 PM / in a year

Shareholders in Polish coal producer JSW agree to wind down troubled mine

WARSAW, Dec 1 (Reuters) - Shareholders in Polish state-run coking coal producer JSW agreed on Thursday to transfer its most troubled mine Krupinski to the state mining restructuring company SRK, which will eventually wind it down, the state-run news agency said.

* The decision is key to JSW’s restructuring plan agreed earlier this year with its bondholders.

* PAP quoted JSW’s chief executive officer Tomasz Gawlik as saying that if they did not take the decision to move the mine to SRK the JSW board would have to announce bankruptcy as this would be a breach of the agreement with bondholders.

* Moving the loss-making Krupinski mine to SRK was opposed by JSW trade unions, which feared miners would lose their jobs. But the management said they will be offered jobs in other JSW mines or attractive social packages.

* Shares in JSW, which clinched a deal with its bondholders in August, have surged by 677 percent since the start of this year, on the back of a rebound in coking coal prices. JSW was up 2.3 percent on the Warsaw stock exchange by 1222 GMT.

Reporting by Agnieszka Barteczko; Editing by Susan Fenton

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