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UPDATE 1-Czech unions join investors to bid for insolvent NWR arm

Mon, 23rd May 2016 13:13

(Adds comment from unions, details on NWR)

PRAGUE, May 23 (Reuters) - Czech miners' unions have teamedup with lignite mine owner Pavel Tykac and another investor tomake 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 investmentfunds. OKD, NWR's main business, filed for insolvency this monthafter failing to secure government aid.

OKD should be able to continue its operations if the offeris accepted, the unions said.

"Our common interest is to take part in preparing therestructuring plan aimed at the as smooth as possiblefunctioning of OKD, the fullest possible employment and creatingconditions for OKD's existence for a matter of years," thecountry's main mining union chief Jan Sabel said.

NWR's main owners - Ashmore Investment Management Limited,Gramercy Funds Management LLC and M&G Investment ManagementLimited - have offered to sell the coal miner to the Czech statefor about 120 million euros ($134 million), cleared of mostdebt.

NWR has been trying to reach a restructuring and state aidagreement with the government since the end of last year, afterplunging into losses as global coal prices fell.

It has debt of around 17 billion crowns ($704 million) andassets worth less than 7 billion crowns, according to courtfilings.

OKD also owes the state money as it failed to pay 70 millioncrowns in social insurance for its employees.

($1 = 0.8926 euros)

($1 = 24.1220 Czech crowns) (Reporting by Robert Muller; Editing by Jason Hovet and MarkPotter)

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