Czech Unions Join Investors To Bid For Insolvent NWR Arm

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. "Our common interest is to take part in preparing the restructuring plan aimed at the as smooth as possible functioning of OKD, the fullest possible employment and creating conditions for OKD's existence for a matter of years," the country's main mining union chief Jan Sabel said. NWR's main owners - Ashmore Investment Management Limited, Gramercy Funds Management LLC and M&G Investment Management Limited - have offered to sell the coal miner to the Czech state for about 120 million euros ($134 million), cleared of most debt. NWR has been trying to reach a restructuring and state aid agreement with the government since the end of last year, after plunging into losses as global coal prices fell. It has debt of around 17 billion crowns ($704 million) and assets worth less than 7 billion crowns, according to court filings. Read more.