Czech Coal Miner NWR Seeks Government Meeting to Avoid Collapse
- Bankruptcy would lead to 13,000 miners losing their jobs
- Restructuring agreement needed by Wednesday to avoid default
This article is for subscribers only.
The Czech government said the owners of troubled coal miner New World Resources Plc were using the prospect of an expensive bankruptcy to blackmail it on the eve of a crucial meeting in which the two sides will seek a way to avert the company’s collapse.
Ad Hoc Group, NWR creditors including Ashmore Investment Management Ltd. that assumed control of the troubled company in February, said the social fallout from an “uncontrolled” bankruptcy could cost the Czech state 33 billion koruna ($1.4 billion), while an orderly phasing out of operations could limit the cost to 17 billion koruna, according to a Deloitte LLP study it commissioned. That is an “unacceptable pressure” on the government, Industry and Trade Minister Jan Mladek told reporters.