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Coal

UPDATE 1-Insolvent Czech miner OKD sues investors for $987 mln

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PRAGUE, Nov 10 (Reuters) - Czech coal miner OKD, which is under insolvency proceedings, has filed a lawsuit against its owner New World Resources (NWR) and former NWR co-owner Zdenek Bakala demanding payment of 24.5 billion crowns ($987 million).

An OKD spokesman said the lawsuit was filed with the regional court in the Czech Republic city of Ostrava and that the company’s creditors had been notified. He gave no further details.

A spokesman for businessman Bakala’s BM Management said it only knew of the legal action from the media and was seeking more information.

An NWR representative was not immediately available for comment.

OKD has been in insolvency since May and its administrator has started to look for investors to take over the business to continue operations at some of its mines for several more years before undergoing a managed closure.

NWR shareholders voted this month to liquidate NWR, which has struggled to contend with low coal prices, and the company has been delisted from the Prague and London stock exchanges. Bakala relinquished his co-ownership in February by returning his shares for free. ($1 = 24.8230 Czech crowns) (Reporting by Jan Lopatka; Editing by Mark Potter and David Goodman)

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