Private equityinvestor and minority New World ResourcesPlc shareholder Arca Capital has offered to buy the coal miner's unit as the parent scramblesto secure government assistanceto stay afloat, Reuters wrote April 13.
Arca said itmade the offer to the miner's main shareholders, holding 60% of the company's equityand about two-thirds of its debt, on April 13. The minority shareholder did notdisclose the amount it offered for OKD but said it would keep the unit's mines operatingfor at least five more years.
According toearlier reports, New World Resources was unableto convince the Czech government to provide aid ahead of an April 13deadline to avoid going into bankruptcy and that the government asked a group ofbondholders who took charge of the company's rescue efforts to provide more informationbefore making a decision on a bailout.
However, FinanceMinister Andrej Babis said the deadline has been extended and the coal miner nowhas until the end of the month to secure a government deal for a temporary waiveron its €35 million credit facility.
Reuters furtherwrote that company representatives met with government officials this week to reachan agreement, with the state saying options for the miner include insolvency ora restructuring, which could mean the government's capital participation or a completetakeover.
The newswireadded that two private Czech coal traders have offered to take part in the process,if New World Resources goes through an insolvency process, but did not give detailsabout the firms' offers.