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The negotiations, spanning over two years, appear to have collapsed over the plant's liabilities in a pollution lawsuit that neither the buyer nor the HSE wanted to take over.

HSE has not made any formal announcements after Friday's supervisory board session but it has called a press conference for Monday.

While it therefore remains unclear what will happen, the most likely scenario in the event of a failed sale has always been closure of the 125 MW plant and liquidation of the company with 160 employees.

The Energy Trade Union has urged HSE not to liquidate the company but it is unclear whether the utility went along with the proposal, the union's president Branko Sevčnikar told the STA.

The power plant had been struggling for years, unable to break even due to outdated technology and declining electricity prices.

It was shut down between May and August, whereupon it was restarted for a month to use up its remaining coal reserves.

The generators are now in coal shutdown and all workers on compulsory leave.