New World Resources fails to get consent for July 15 coupon payment

By Caroline Salls

Pittsburgh, July 15 – New World Resources plc and New World Resources NV has not received consent from holders of its senior secured and senior unsecured notes to make the July 15 coupon payment on the senior unsecured notes, according to a news release.

Consent from the majority of locked-up holders of both notes is required. Given the position of the noteholders, New World’s board of directors said it is in the best interest of creditors to continue to assess the prospects of success of the company’s restructuring transactions over the coming days before deciding on the payment of the senior unsecured notes coupon.

The notes indenture provides a 30-day grace period for payment.

New World said it received executed lock-up agreements from 84% of its senior secured noteholders and 65% of senior unsecured noteholders by the July 11 early bird consent fee deadline for its restructuring transaction.

As part of the restructuring transaction, existing noteholders would receive a suite of new debt instruments, together with €60 million and €30 million cash tenders for the senior secured notes and senior unsecured notes, respectively.

This transaction is subject to approval of requisite majorities of the existing senior secured noteholders, the existing senior unsecured noteholders and the shareholders of New World Resources plc. It is also conditional upon an agreement with the lenders who provided an export credit agency-backed loan.

As part of its contingency planning, the company agreed to an alternative restructuring term sheet with some holders of senior secured notes in case any of the requisite majorities do not support the transaction.

According to the release, the lock-up agreement parties agreed to limited changes to the restructuring transaction and the alternative restructuring plan.

The company said these changes are primarily technical and relate to the extension of the deadline for the agreement with the lenders and the structure of the consideration in the alternative restructuring plan.

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

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