14 Apr 2016 10:58
Amsterdam / London, 14 April 2016
Extension of 13 April 2016 Milestone Deadline in Super Senior Credit Facility Standstill and Waiver Agreement
New World Resources Plc ('NWR Plc') and New World Resources N.V. ('NWR NV', and NWR Plc and NWR NV, together with their subsidiaries, the 'Group') today announce an extension of the date for satisfaction of the first milestone contained in the current Super Senior Credit Facility standstill and temporary waiver, from 13 April 2016 until 22 April 2016.
As previously announced, the requisite majority of lenders under the Group's Super Senior Credit Facility have agreed on 23 February 2016 to a standstill and temporary waiver. The terms of this standstill and temporary waiver were that it will remain in place until 31 July 2016, if certain milestones regarding the progress of negotiations and reaching of agreement on a restructuring of the Group are satisfied, namely: (a) a non-binding heads of agreement for the implementation of a restructuring of the Group with the Czech Government on or by 13 April 2016 (originally 31 March 2016, but extended with agreement of the requisite majority of lenders on 1 April 2016) (the "First Milestone"); and (b) a binding agreement regarding a restructuring with the Czech Government on or by 30 April 2016.
The Group is in constructive discussions with certain key stakeholders, including its noteholders and shareholders and the Czech Government, regarding a restructuring of the Group's financial indebtedness. In light of progress made to date and the desire of all parties to work together towards reaching a binding agreement on commercial terms on or by 30 April 2016, the requisite majority of lenders under the Super Senior Credit Facility have agreed to extend the date for satisfaction of the First Milestone from 13 April 2016 until 22 April 2016.
The continuing negotiations among stakeholders are focused on securing (1) a viable business for the Group, with a sustainable portfolio of cash-generative mines; (2) a capital structure appropriate to allow that portfolio to operate as a going concern through the anticipated extended period of low coal prices; and (3) clarity for employees. While significant progress has been made to date and parties are committed to moving forward, there is no guarantee that a refinancing or restructuring can be achieved or of the terms on which it could be achieved.
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Investor and Media Contact:
Radek Nemecek
Tel: +420 727 982 885
rnemecek@nwrgroup.eu
Website: www.newworldresources.eu
About NWR:
New World Resources Plc is a Central European hard coal producer. NWR produces quality coking and thermal coal for the steel and energy sectors in Central Europe through its subsidiary OKD, the largest hard coal mining company in the Czech Republic.