Government loan mining company OKD
On July 27, the Czech government approved a 700 million crown ($29 million) loan to help keep afloat OKD, an insolvent metallurgical coal operator owned by New World Resources, according to Business Radio Prague. A major employer in the Czech Republic’s industrial northeast, the company has been scrambling for cash to pay miners’ wages in recent months as it goes through insolvency proceedings with the aim of reorganizing as government ministers debate how to help the firm. The loan gives OKD, which employs around 12,500 and that mined 8 million metric tons in 2015, enough cash to continue operations until the end of the year. “Keeping OKD in operation is an important condition for social stability in the region,” Prime Minister Bohuslav Sobotka said on Twitter.
OKD has debt of around 17 billion crowns ($708 million) and assets worth less than 7 billion crowns ($292 million), according to the insolvency filing.