PRAGUE May 12 Czech coal miner OKD's insolvency
administrator is seeking more than 12 billion crowns ($491
million) from the company's former owners, including New World
Resources and investor Zdenek Bakala, a lawsuit showed on
OKD fell into insolvency a year ago as falling coal prices
pushed it into deep losses. It is now going through a
reorganisation and the government has bid to buy OKD, which runs
the country's only hard coal mines and employs more than 10,000
in the industrial northeast.
OKD filed its own lawsuit in November last year against its
sole shareholder NWR and NWR's former co-owner Bakala to get
back twice the amount that the administrator, Lee Louda, is
Louda is seeking the return of dividends paid from OKD to
NWR for the financial years 2010 and 2011.
"The stated massive payouts of dividends irrespective of the
real level of profit that (OKD) was able to generate in the
given period was one of the main causes of the insolvency of
(OKD)," the administrator said in the lawsuit filing.
Besides NWR and Bakala, Louda is also suing another former
investor, Peter Kadas, along with BXR Group and CERCL Mining,
companies affiliated with the former majority owners of NWR.
NWR shares stopped trading shortly after the insolvency of
OKD, its main revenue provider, and shareholders voted last
November to liquidate the company.
Louda's office said he could not be immediately reached for
a comment while a media representative for Bakala declined to
A CERCL spokesman said the company was not aware of anyone
receiving a suit yet. "However, CERCL is very confident that it
will be shown to be completely without foundation," the
Representatives for the other parties were not immediately
Bakala relinquished his co-ownership in NWR in February
2016, before OKD's insolvency filing, by returning his shares
($1 = 24.4360 Czech crowns)
(Reporting by Jason Hovet and Petra Vodstrcilova; Editing by