New World Resources restructuring sanctioned ending U.K. court process

By Kali Hays

New York, Sept. 5 – The High Court of Justice of England and Wales sanctioned the consensual restructuring transaction of New World Resources plc and New World Resources NV Friday, concluding the company’s court proceedings in the United Kingdom, according to a news release.

As previously reported, the restructuring transaction received support from 99.4% in value of the holders of secured notes and 95.3% in value of the unsecured notes held by voting creditors in creditor meetings held Aug. 29.

The transaction is still subject to completion in the U.S. courts, the completion of approval processes by parties to the Export Credit Agency and the raising of €185 million of new money by means of a €118 million rights issue, a €32 million placing and a €35 million credit facility.

New World said the necessary funds are fully committed by a group of existing noteholders and the company’s majority shareholder.

The company said the rights issue is an offer for 19 new A shares for each existing A share held by shareholders.

Cercl Mining has agreed to take up its full rights, for a total investment of €75 million. The remaining amount will be underwritten by the noteholders.

The rights issue period runs from Sept. 10 to Sept. 29. The period for placing of any new A shares not subscribed for in the rights issue starts on Sept. 30 and ends on Oct. 1.

Fully paid new shares can be traded beginning on Sept. 30, the release said.

At an extraordinary general meeting held on Aug. 20, the company’s shareholders voted in favor of the rights issue and the placing.

The U.S. Bankruptcy Court for the Southern District of New York will hear the company’s motion for recognition of the High Court of England and Wales scheme process as a foreign main proceeding and for enforcement of the scheme on Sept. 9.

The restructuring is expected to be completed in early October.

New World Resources is an Amsterdam-based central European coal producer with operations in the Czech Republic. The company filed for bankruptcy on July 30 under Chapter 15 case number 14-12226.

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