New World Resources to seek U.S. recognition of restructuring process

By Caroline Salls

Pittsburgh, July 30 – New World Resources plc and New World Resources NV will submit a petition for U.S. recognition of its U.K. court process after receiving approval from the High Court of England and Wales to hold meetings on Aug. 29 where its two groups of noteholders will vote on the company’s restructuring, according to a news release.

As previously reported, the New World group announced on July 2 that it had revised the terms of its proposed restructuring transaction under an agreement with an informal joint committee of holders of its senior secured notes and senior unsecured notes, some individual noteholders and its majority shareholder.

Also on July 2, the company said it has, as part of its contingency planning, agreed to a proposed alternative restructuring plan with some holders of the senior secured notes, in case the consensual restructuring plan cannot be implemented.

New World said Wednesday that it received executed lock-up agreements from about 85% of the holders of the senior secured notes and 65% of the holders of the senior unsecured notes by value.

As part of the contingency planning to ensure the continuation of the operation of assets, the company said it launched a sales process for operating subsidiaries OKD as in the Czech Republic and NWR Karbonia SA in Poland.

Any bids received will be assessed against New World’s other options, including the alternative restructuring plan, the release said.

After the Aug. 29 scheme of arrangement approval meetings, the company said it expects the scheme sanctioning hearing to be held on Sept. 5.

In addition to court sanctioning, implementation of the restructuring is subject to approval of the New World Resources plc shareholders in connection with a rights issue and placing.

The transaction is expected to close at the end of September.

New World Resources is an Amsterdam-based central European coal producer with operations in the Czech Republic.

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