Restructuring or bankruptcy. JSW is looking for PLN 2.9 billion. Balczun: Deep cuts are necessary
The restructuring of Jastrzębska Spółka Węglowa is a condition for its obtaining financing. If an agreement is reached with the social side, there will be ways to maintain the company's liquidity in the coming weeks – said the Minister of State Assets, Wojciech Balczun, in an interview with PAP Business.
“For several months, we have been showing our determination and willingness to save JSW. We have been working to ensure that the company could be covered by the provisions of the mining-related act. Changes were introduced in the company, and at the same time, work was underway to search for potential sources of financing. We cannot talk about the possibility of balancing the activities, because the market prospects are still difficult. Our goal at the moment is to save liquidity,” Wojciech Balczun, Minister of State Assets, told PAP Biznes.
“There is a chance to save liquidity at JSW, but for such actions to be effective, restructuring is necessary. This is a condition for any financing in every scenario we have on the table,” he added.
For several weeks, the JSW management board held talks with representatives of the social side about temporarily reducing labor costs. According to the management board, in the company's crisis situation, concluding an agreement is a key condition for obtaining financing from state and private financial institutions.
On Friday, JSW agreed on the terms of the suspension agreement with trade unions operating in the company. The project will be the subject of a referendum conducted among the company's employees, which will take place on February 12.
The draft of this agreement assumes the suspension of certain provisions of collective agreements concluded with trade unions. The key changes include: suspension of the right to the 14th salary for 2026, postponing the payment date of the 14th salary for 2025 to 2027, and introducing the payment of the St. Barbara's Day award in installments for 2025-2027. Additionally, the payment of the coal allowance and the limitation of other benefits will be suspended.
The draft suspension agreement assumes that it will enter into force on the day of its signing, with effect from February 1, 2026, and will be concluded for a period of 23 months, i.e. until December 31, 2027.
As stated, JSW is to make every effort to obtain the financing necessary for its continued operation by the end of March 2026, and its granting depends on the development of a recovery program. The company is conducting talks on obtaining new funds in the amount of up to PLN 2.9 billion, and is also taking steps to obtain funds from the sale of assets.
“If the agreement with the trade union is signed, I am sure that we will find solutions that will maintain JSW's liquidity in the coming weeks so that we can solve financing issues more systematically in the longer term,” said Minister Wojciech Balczun.
Previously, it was reported that granting JSW a loan from the Reprivatization Fund in the amount of PLN 2.9 billion depended on the agreement with the trade unions.
“It is not possible to grant a loan from the Reprivatization Fund, but we are working on alternative solutions and are in negotiations,” said the Minister of State Assets.
When asked whether a rescue issue of shares was being considered, he replied: “JSW is a public company and we must take this element into account when conducting talks.”
The minister said that negotiations with social partners are very difficult, but it is important that there is a willingness to find a solution.
“I would like to thank the social side for the talks being held, the seriousness of the situation being understood and solutions being sought. I hope that we will find an agreement and ultimately be able to save the company, but – of course – in a restructured version,” Balczun said.
“Cutting the branch on which we are all sitting may end badly. You cannot just count on a good uncle in the form of the state to come and give you money, regardless of the situation. In difficult moments for the company, the primary goal is the company's interest. We are on the same side,” he added.
JSW is struggling with the pressure of low prices of coking coal and coke and the deteriorating situation of the European steel industry.
As the head of MAP said earlier, JSW has already used up the entire several-billion-dollar stabilization fund, which was supposed to protect the company in periods of economic downturn, and is currently generating losses of several hundred million zlotys per month.
During the nine months of 2025, the group recorded PLN 7 billion in revenues, which means a decline of 20.9%. rdr. EBITDA adjusted for one-off events was negative after three quarters of 2025 and amounted to PLN -1.4 billion compared to PLN 887.2 million of EBITDA profit a year ago.
Anna Pełka, Aneta Oksiuta, Piotr Rożek (PAP Biznes)
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