Following a meeting between the Board of OKD, New World Resources Plc and New World Resources N.V. (NWR NV, and NWR Plc and NWR NV, together with their subsidiaries, the group) has announced that the board has decided to file an insolvency petition, which has been filed with the Czech court.
As noted previously, including in the announcement dated 29 April 2016, the group has been in discussions with its stakeholders, including the Czech government and the Ad hoc group of its creditors (the AHG), since the beginning of December 2015, regarding a restructuring of liabilities and the provision of vital additional liquidity to OKD. Information provided to the Czech government and the AHG to date shows OKD’s financial position is weak and it urgently requires an external injection of money to be able to continue trading and to meet its financial liabilities, including paying its workers.
As previously announced, the Board of OKD met on 29 April 2016 and decided that, in light of the current circumstances, it would reconvene on 3 May 2016 to discuss the potential filing of an insolvency petition by OKD. No further meaningful progress has been made in the past few days. As a result, the Board of OKD resolved to file an insolvency petition. The insolvency petition was filed on the afternoon of 3 May 2016 with the Czech court.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/04052016/okd-board-files-for-insolvency-706/