3rd May 2016 12:37
LONDON (Alliance News) - New World Resources PLC on Monday said its OKD AS subsidiary has filed for insolvency proceedings in the Czech Republic.
New World had warned on Friday the subsidiary, which holds all of its coal assets, was considering filing an insolvency petition as it continued to try to reach a deal over its financing with creditors and the Czech government.
On Monday, New World said the board of OKD has decided to file an insolvency petition with a Czech court.
The company said no "meaningful progress" was made on OKD's current financial situation over the weekend. New World said OKD's current financial position is "very weak" and it "urgently requires an external injection of money" to continue trading.
New World shares were down 62% to 0.1 pence on the news.
By Sam Unsted; [email protected]; @SamUAtAlliance
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