PRAGUE (Reuters) - Main shareholders and creditors of troubled Czech coal miner New World Resources (L:NWRR) (PR:NWRR) have asked the government to provide 150 million euros (£119.1 million) in return for a stake in its operating unit OKD, a spokesman for the owners said on Saturday.
As part of a restructuring plan, the AHG group which holds about 60 percent of voting rights and 65 percent of NWR's debt has offered to write 420 million euros worth of bonds and provide 35 million euros of cash to the firm, AHG said in a statement.
"The reorganisation plan requires the bondholders to write-off a further 420 million euro of debt, and for the investors to make an additional 35 million euro available to provide support for OKD through to completion of any deal," the statement said.
"The plan is focused on delivering a solution to prevent the significant financial cost, economic impact and social consequences of bankruptcy and creating a viable, funded business. It reflects a commitment of 150 million euros from the Czech government in return for an equity stake in OKD."
AHG, which includes global asset managers Ashmore InvestmentManagement Limited, Gramercy Funds Management LLC and M&GInvestment Management Limited, has been in talks with the government to avert bankruptcy of the firm which employs about 13,000 people.