Czech Republic

CEFC Europe, a Czech-based division of troubled conglomerate CEFC China Energy, said it would contest a takeover of shareholder rights by creditor J&T Private Investments (JTPI), arguing it had funds to pay a debt at the centre of the dispute, Reuters reported. Czech-based JTPI said on Thursday it had taken over the rights and installed crisis management because CEFC Europe had not covered its debt, totalling 450 million euros according to CEFC, in time.

Creditor J&T Private Investments (JTPI) said on Thursday it had taken over shareholder rights and installed crisis management at CEFC Europe, the Czech-based part of troubled Chinese conglomerate CEFC China Energy, Reuters reported. The move is a sign of fresh woes for CEFC Europe which bought Czech assets from real estate to breweries, an engineering firm, an airline and a football club, under an investment drive promoted by Czech President Milos Zeman. CEFC Europe protested against the move, saying it had the money ready to cover the debt.

Policy makers in Prague may introduce negative interest rates to discourage inflows into the koruna around the time they are ending their three-year-old limit on the exchange rate, a policy maker said, Bloomberg News reported. As the Czech National Bank prepares to scrap its Swiss-style cap on the koruna next year, its main challenge is to avoid excessive currency gains that could choke nascent price growth and make the export-led economy less competitive.

The Czech government approved a 700 million crown ($29 million) loan to help keep afloat hard coal miner OKD, an insolvent unit of New World Resources , the prime minister and industry minister said on Wednesday, Reuters reported. OKD, a major employer in the Czech Republic's industrial northeast, was declared insolvent by a court in May after its owners failed to secure government aid to help it through a sharp fall in global coal prices.

The Czech corruption police investigate the financial management of the OKD black-coal mining company, which was declared insolvent in May and has debts worth billions of crowns, the Czech News Agency has found in the insolvency register. Detectives from the Squad for Uncovering Organised Crime (UOOZ) are looking into suspicious transactions of OKD and the owner of the NWR Holdings B.V., which owns OKD. The police have asked for documentation on OKD financial management, according to OKD insolvency administrator Leo Louda.

Czech coal miner OKD, the insolvent unit of New World Resources (NWR), urgently needs a state loan of up to 1 billion crowns ($42.1 million) to keep operating, Industry Minister Jan Mladek said on Wednesday, Reuters reported. Mladek, in a statement, said that a state-backed loan was the only option for OKD to secure financing to keep operating this month. OKD, a major employer in the Czech Republic's industrial northeast, was declared insolvent by a court in May after its owners failed to secure government aid to help it through a sharp fall in global coal prices.

Czech miners' unions have teamed up with lignite mine owner Pavel Tykac and another investor to make on offer for New World Resources' insolvent mining subsidiary OKD, the unions said on Monday. The unions did not give any details of their offer to NWR, which is mainly owned by a trio of international investment funds. OKD, NWR's main business, filed for insolvency this month after failing to secure government aid. OKD should be able to continue its operations if the offer is accepted, the unions said.

New World Resources Plc, which entered the Prague Stock Exchange eight years ago as the largest Czech equity offering ever, may become the country’s biggest corporate failure in at least a decade, Bloomberg News reported. The mining company, controlled by a group of investors including Ashmore Investment Management Ltd., said on Wednesday it will probably be “wound up or broken up in an orderly manner” as a result of an insolvency filing by its key asset, OKD AS.

The main business of Czech coal miner New World Resources (NWR) filed for insolvency on Tuesday after failing to secure government aid, but could still agree a reorganisation plan to stay afloat, Reuters reported. The business, OKD, which owns the country's only hard coal mines, is the latest miner worldwide to seek creditor protection amid slumping prices. Loss-making OKD said in its insolvency filing that it owed 17 billion crowns (629.01 million euros) and held assets worth less than 7 billion crowns.

New World Resources' (NWR) loss-making coal mining division OKD will have to file for insolvency unless the government can agree a deal with its owners to take the company over at a lower price, Czech Industry Minister Jan Mladek said on Monday. NWR has already said the coal mining group will run out of money by the middle of May and will need to file for insolvency before that unless the government and creditors agree a deal soon. The coal miner, which employs around 13,000 people, has been hit by low prices and weak demand.