16th May 2016 07:12
LONDON (Alliance News) - New World Resources PLC Monday said it does expect some cash to be distributed to shareholders once the subsidiary that holds all of the company's assets is wound-up as the company tries to repay just under EUR600.0 million worth of debt.
New World is in the process of winding-up its operating subsidiary, OKD AS, after New World filed an insolvency petition on its behalf to courts in the Czech Republic.
The company had previously warned shareholders they were unlikely to receive any distribution from the process, but said Monday it expects a small amount of cash to be leftover and distributed to its investors.
"It is possible that there may be some remaining cash balances at New World Resources PLC after the orderly wind up or break up of the New World Resources Group. However, any recoveries for shareholders... are likely to be limited and will possibly be less than EUR8.0 million," said the company.
To put that into some form of perspective, New World Resources has 3.30 billion shares in issue, suggesting each share would be entitled to around EUR0.0024 based on that EUR8.0 million figure.
New World said it has total debt amounting to EUR599.0 million, broken down into a EUR352.0 million of senior secured PIK notes due in 2020, EUR162.0 million of convertible loan notes due in 2020, a EUR50.0 million export credit-agency backed facility and a EUR35.0 million super senior credit facility.
New World said the EUR35.0 million credit facility must be paid in full before any other debts are serviced.
The company has appointed Deloitte LLP to try to find a buyer of its other subsidiary, NWR Karbonia SA, which operates in Poland.
By Joshua Warner; [email protected]; @JoshAlliance
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