Czech Miner NWR's Main Business Files For Insolvency

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. Most of its debts are guarantees for the parent company's bonds and loans which could become payable prematurely due to breaching debt terms. OKD said it did not have enough money to cover its liabilities but expected to receive payments from customers to maintain operations and pay wages. OKD employs nearly 10,000 staff and 3,000 agency workers. Major customers include steelmaker ArcelorMittal's Czech plant and U.S. Steel's Slovak plant. Read more. (Subscription required.)