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Current reports

Current reports

Current reports

Current report no. 36/2020

Commencement of activities aimed at the liquidation of the subsidiary

 

Legal basis:

Art. 17 item 1 MAR – inside information

 

Contents of the report:

Zespół Elektrowni Pątnów–Adamów–Konin SA (the "Company") informs that on August 3, 2020 the Management Board of PAK KWB Adamów SA (a subsidiary of the Company) adopted a resolution on the dissolution and liquidation of PAK Kopalnia Węgla Brunatnego Adamów SA. In accordance with the above-mentioned resolution, the Management Board of PAK KWB Adamów SA requested the Extraordinary General Meeting to adopt a resolution, inter alia on the dissolution and liquidation of PAK KWB Adamów SA and the appointment of the Management Board of PAK KWB Adamów SA to act as liquidators.

 

ZE PAK SA holds 99.35% of shares in PAK KWB Adamów SA.

 

During its long-term operation, PAK KWB Adamów SA has been extracting lignite using the open pit method for Adamów power plant. At the end of 2017, after the end of operations by Adamów power plant, the activity of PAK KWB Adamów SA was extended due to the remaining coal resources to be extracted and the possibility of supply to Pątnów power plant. However, the current and anticipated situation on the energy market does not generate any impulses to maintain the current potential in the upstream segment. The main factors influencing the decreasing efficiency of operations include: decreasing energy consumption, narrowing the difference between the price of energy and the price of CO2 emission allowances, dynamically growing energy import, increasing competitiveness of gas and renewable energy sources. In the case of PAK KWB Adamów SA, the cost of coal delivery is also important, which is higher than in the case of supplies from open-pit mines operated by PAK KWB Konin SA.

 

According to the assumptions, at the end of 2020, PAK KWB Adamów SA will stop mining coal, and thus there will be grounds for adopting a resolution of the General Meeting to dissolve the company (Art. 459 of the Commercial Companies Code). As soon as the resolution of the General Meeting on dissolution is adopted, the liquidation is opened and the liquidation process begins. PAK KWB Adamów SA in liquidation, in addition to terminating mining operations, will carry out all activities resulting from geological and mining law (geological documentation, license waiver, operation plan of the decommissioned mining plant, etc.). An important scope of tasks related to the liquidation will be inventory and preparation for sale of the company's assets. It is assumed that the real estate of PAK KWB Adamów SA can be used to the extent possible for the implementation of projects related to renewable energy sources.

 

Signatures of persons representing the Company:

Maciej Nietopiel – Vice President of the Management Board

Paweł Markowski – Vice President of the Management Board

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