Amsterdam, 11 October 2016
Karbonia shares transferred to Prairie Mining Limited
following creditors' enforcement action
New World Resources Plc ("NWR") announces today that the requisite majority of the lenders under the EUR 35 million super senior credit facility ("SSCF") have issued enforcement instructions over the shares that NWR Holdings B.V. holds in NWR Karbonia S.A. ("Karbonia"). These lenders (the "SSCF Lenders") have instructed Citibank N.A. (the "Security Agent") to take control over those shares and to transfer them to Prairie Mining Limited for an upfront consideration of EUR 0.5 million and deferred cash consideration of EUR 1.5 million.
As previously announced on 16 May 2016, the external indebtedness of NWR and its subsidiaries (the "Group") comprises, among others, approximately EUR 352 million Senior Secured PIK Notes due 2020 ("SSNs"), and the SSCF. The creditors under the SSNs and the SSCF were granted a security and guarantee package that included a pledge of the shares in Karbonia. Under the Group's intercreditor agreement, the SSCF is super senior to the SSNs. The SSCF liabilities must be satisfied in full before any return to the SSNs is possible.
As a result of the insolvency petition filed by OKD, a.s,, and certain other related events of default, each of the SSCF and SSNs were accelerated. In this context, the requisite majority of SSCF Lenders have instructed the Security Agent to take a number of enforcement actions (including taking control over the accounts in New World Resources N.V. and NWR Holdings B.V., and distributing most of this cash to the SSCF Lenders).
The requisite majority of SSCF Lenders have now issued enforcement instructions over the shares that NWR Holdings BV holds in Karbonia. They have instructed the Security Agent to take control over those shares and to transfer them to Prairie Mining Limited for (i) upfront consideration of EUR 0.5 million in cash upon signing of the share transfer agreement and (ii) deferred consideration of EUR 1.5 million in cash payable upon certain project specific milestones being achieved.
Following completion of the transaction, and receipt of all proceeds, the outstanding balance of the SSCF is approximately EUR 20 million.
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About NWR Plc:
New World Resources Plc is a Central European hard coal producer. NWR produces quality coking and thermal coal for the steel and energy sectors in Central Europe through its subsidiary OKD, the largest hard coal mining company in the Czech Republic.
This information is provided by RNS