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Revised capital restructuring terms agreed by NWR

World Coal,


Czech coal miner, NWR, which has made consistent losses for several consecutive quarters, has agreed the terms of a revised capital-restructuring plan. The company will put its main business up for sale if the plan does not win enough support from share and bond holders.

The new terms have the backing of 62% of its senior secured noteholders, 37% of senior unsecured noteholders and by majority shareholder BXR, NWR said in a stock exchange filing on Wednesday.

Under the revised terms, NWR said a € 30 million senior unsecured notes tender shall be at a fixed price of 25% of par. 

The company said that, as part of contingency planning in case it does not get enough support for the revised restructuring plan, it was starting a sale process for mining subsidiary OKD and Polish business NWR Karbonia.

"The board of directors believes that it is prudent to continue contingency planning in parallel with the implementation of the revised consensual transaction," NWR said in the filing.

The company has struggled with the downturn in coal prices in the global market.

Any deal must be approved by a majority in number and 75% by value of each class of creditor voting in person or by proxy. NWR announced a conditional deal in June in an attempt to cut its debt by almost a half and secure new capital to stave off insolvency.

Edited from various sources by Sam Dodson

Read the article online at: https://www.worldcoal.com/coal/02072014/nwr_agrees_revised_terms_of_restructuring_plan_1046/


 

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