Czech Industry Minister Says NWR's Mining Arm Needs $42 Million Loan To Keep Operating

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. With around 13,000 jobs at risk, the government is now looking to keep the miner operational for some time. Mladek said the company needed operating capital of 400 million crowns along with 280 million crowns for mining operations until the end of the year. He said it should also hold another 320 million crowns for reserves. Mladek was due to discuss the loan with Finance Minister Andrej Babis on Wednesday, after Babis met OKD management and labour union officials on Tuesday. Read more.