Coal giant denies bankruptcy

Photo: sxc.hu

Smaller company Centrala Zaopatrzenia Gornictwa (CZG) filed a complaint at a court in Katowice, southern Poland, insisting that KW is bankrupt.

Kompania Weglowa, which is the largest mining company in Europe, owes CZG 3 million zloty (694000 euro), yet last week it insisted on another 120 days to pay its debts.

However, the smaller company, which produces chains, hooks, supply lines and other items used in Kompania Weglowa's mines, has resorted to legal measures.

Kompania Weglowa has described the move as “blackmail” and insists that its debts will ultimately be paid.

“When it's summer, coal sells less than during the heating period and winter,” company spokesman Zbigniew Madej told Polish Radio.

“I will not deny we have 6 million tonnes of unsold coal, but let's remember that Kompania Weglowa made a profit of over 170 million zloty profit last year (39.3 million euro), and a positive result is also expected this year.” (nh)