March 6 (Reuters) -
* Poland would like to convert 30-35 percent of outstanding
1.4 billion zlotys ($344 million) of obligations to bondholders
of state coal producer KHW into shares of the merged state coal
firm PGG, a deputy energy minister said on Monday.
* Grzegorz Tobiszowski also told reporters that it could
prove difficult to secure agreement to the conversion from banks
holding the bonds.
* Banks BZ WBK, BGZ BNP Paribas, PKO BP
, state bank BGK and DZ Bank AG are all
bondholders in KHW.
* Tobiszowski said that potential investors and financial
institutions involved in KHW will meet at the office of
state-run utility PGE for talks on Tuesday.
* Trade unions at KHW agreed last week to a merger with
bigger rival PGG.
($1 = 4.0650 zlotys)
(Reporting by Wojciech Zurawski in KATOWICE, Poland; Writing by
Marcin Goettig; Editing by Lidia Kelly and David Goodman)