WARSAW, Dec 15 (Reuters) - Polish coking coal producer JSW needs 3 billion zlotys ($834 million) of liquidity to keep operating next year, the state assets minister said on Monday, adding the company
JSW Requires Over $830 Million to Sustain Operations, Minister Says
WARSAW, Dec 15 (Reuters) - Polish coking coal producer JSW needs 3 billion zlotys ($834 million) of liquidity to keep operating next year, the state assets minister said on Monday, adding the company was considering loans from commercial banks and a government fund.
JSW, the European Union's largest producer of coking coal used in steelmaking, has been hit by falling prices and high wage costs, and is working on a restructuring plan.
If approved, the plan could save billions of zlotys on wages, estimated by Erste analyst Jakub Szkopek at 7.1 billion zlotys per year.
The state-controlled company has already cut investments and spent almost all of its rainy day fund, which has shrunk from nearly 5 billion zlotys at the end of 2022 to around 100 million in October.
JSW reported a net loss of 796.3 million zlotys for the third quarter, widening from a 315.3-million-zloty loss a year earlier.
"The restructuring plan for JSW is ready. The company is intensively negotiating to secure commercial financing from the international market," Wojciech Balczun told reporters.
"Market responsiveness is high. At the same time, we are negotiating a loan from the Restructuring Fund. JSW needs almost 3 billion zlotys to ensure its liquidity for the next year."
($1 = 3.5956 zlotys)
(Reporting by Marek Strzelecki and Anna Koper. Editing by Mark Potter)
