Poland Gives Coal Miner Lifeline With State Utilities' Cash
- PGE, Energa and PGNiG each invest 500 million zloty in coal
- Rescue may not be enough to prop up coal producer: analysts
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Poland’s government sealed a restructuring deal for its loss-making coal-mining industry with cash injections from state-owned power producers, cementing efforts to keep the country’s $545 billion economy running on the black fuel.
The deal is centered on a 1.5 billion zloty ($388 million) injection from PGE SA, Energa SA and PGNiG SA to help the European Union’s largest coal producer gain profitability within two years after a record loss in 2015. Five banks, including units of Banco Santander SA and BNP Paribas SA, also signed the deal in Katowice, southern Poland, to give the new company, to be renamed Polska Grupa Gornicza Sp. z o.o., financing options.