Press: NWR's British liquidator threats to sue Czech state over ‘nationalisation’ of OKD miner

The British liquidator of New World Resources (NWR) is threatening to sue the Czech state in connection to it taking over the coal miner OKD, formerly a part of the energy company, the business daily Hospodářské noviny reports.

A regional Czech court in October 2017 approved the reorganisation of OKD as proposed by its management and approved by creditors. Two months later, the European Commission approved the takeover by state-owned company Prisko, which paid CZK 80 million for OKD’s mining assets. Appeals by NWR and others against the OKD reorganisation plan were rejected by a Czech court in June 2018.

A partner at NWR’s liquidator, Jenner & Block, has now said in a letter to Prisko, taken to be a pre-litigation challenge, that OKD’s mining business was in effect illegally nationalised, resulting in damages of hundreds of million of euro against NWR, according to Hospodářské noviny, which has seen a copy of the letter.

OKD creditors have filed claims of over CZK 20 billion in court, but the administrator has rejected the lion’s share of the claims. OKD continues to mine coal and employs around 9,500 people.

Author: Brian Kenety