Tuesday, August 30, 2016

JSW: an agreement with bondholders ws. Repayment of debt – Polish Radio

The new schedule for the repayment of the bonds implies reducing the amount initially agreed repayment in the initial period and extending the repayment period of five years until 2025.

Negotiated several months agreement with financial institutions initially was to be concluded by the middle of this year, however, the term twice postponed. Last year, the terms of the agreement, the supervisory board approved the JSW. It is signed on Monday in Warsaw in the presence of Minister of Energy Christopher Tchórzewski.

Quoted in the press release CEO of JSW Tomasz Gawlik estimated that adopted in consultation solution gives the company the financial breath.

“It’s a time in which we will be able to effectively carry out optimization measures and investment. We will carry out an action program which allows the company to achieve positive financial results, “- commented the president.

The parties to the agreement are bondholders – PKO BP SA, BGK, PZU SA, PZU Zycie SA and the management of JSW. This document refers to the conditions of the further activities of the group JSW and repayment of bonds in the amount of 700 million zł and 163.75 million US dollars (about 1.3 billion zł issued by JSW under an issuance program as constituted on 30 July 2014.).

“We have had very difficult negotiations. Bondholders put up high demands on the conditions for further financing of the JSW group. We managed to reach an agreement beneficial to both parties. Now we are well on the way to the stable development of JSW “- said in a statement quoted minister Tchórzewski.

Bondholders give up their rights, on the basis of the so-called. put option contained in the existing Program bond issue, understood as the possibility of early redemption of bonds with funds from the Eurobond issue.

In addition, the board of JSW agreed with bondholders plan of restructuring activities that will realize JSW to improve the financial performance of the group and to achieve long-term viability. As reported last week, 2025. JSW group is expected to reduce operating costs by a total of approx. 1.6 billion zł.

unofficially learned PAP sources in the company and the Ministry of Energy, one of the conditions agreement with bondholders was the transfer of bringing big losses Krupiński in Suszcu Company Restructuring mines (NDS) – the decision of the board of JSW announced in the first half of August.

the information JSW shows that the total amount of losses Krupiński within the past 10 years dating back to approx. 900 million zł. The plant produces mainly coal, for which demand decreases. JSW wants to focus primarily on the production of coking coal, which achieves higher prices. Another problem is the high contamination of raw material deposits Krupiński.

Mine Krupiński will work until the end of January; later, her fortune will go to SRK, and plant equipment – four mechanized complexes, conveyors, haulage equipment and other – will be transferred to other mines JSW. The Management Board ensures that no one will lose jobs. The greater part of the crew Krupiński find it in other mines of the company – the allocation is to be considered a resident employees and is not to separate ripped longer together brigades.

Last week, the board of directors of JSW approved the action plan optimization for the years 2016-2025, which will be implemented by JSW to improve the financial results of the group and achieve long-term profitability.

Among the key action plan envisages the sale of selected assets of the group – the company SEJ and Wałbrzyskie Coke plant Victoria ( both transactions are currently being finalized), the transfer of mining assets so. Traffic Jas-Mos (part Borynia-Zofiówka-Hawks) and Krupiński to SRK, as well as additional funding for the continued operation of the JSW group by the end of the first half of 2017., including a large part in the fourth quarter of 2016.

“JSW constantly analyzes the necessary height and available forms to obtain such additional financing, which includes both debt and equity,” – reads the company’s statement last week. This spring, representatives of the Ministry of Energy did not rule out a new issue of shares in JSW.

The company’s restructuring plan also envisages the mobilization of external financing for investments in mines and Budryk Boar-Szczyglowice in the form of modernization in the years 2016-2018 coal processing plant these mines.

the aim of these projects is to increase the volume of production, to undertake the production of coking coal type 35 and to increase the yield of coking coal in the total production. This will allow for the implementation implemented by the board of JSW business model, in which the emphasis is on changing the structure of the product group for coking coal achieving higher prices, while reducing coal production for energy purposes.

In addition, the plan envisages austerity measures aimed at to lower the total cost of operations of the group JSW approx. 1.6 billion zł to 2025., due to, among others, downsizing and organizational structure, and provides operational initiatives in the areas of production, commerce and shopping.

 

PAP, jk

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