Miner NWR shareholders approve rights issue as part of restructuring

(Adds details, shares)

PRAGUE, Aug 20 (Reuters) - Shareholders of New World Resources (NWR) have approved a rights issue to raise 118 million euros as part of the Czech coal miner's proposed debt and equity restructuring, the company said on Wednesday.

NWR has suffered losses due to a drop in global coal prices and is seeking capital from shareholders and asking bondholders to take a loss on their investments.

Bondholders are due to meet on Aug. 29 to vote on the plan, which aims to cut NWR's 825 million euro debt pile - mostly in secured and unsecured notes due in 2018 and 2021 - by 325 million euros.

It said last month that the rights issue of about 5 billion shares would be priced at 0.02 euros per share, a 82.93 pct discount to its July 29 closing price. It will cause a major dilution for shareholders who do not take part.

NWR shares were up 1.4 percent on the day at 3.65 crowns following the approval but, amid low liquidity, they have batted around since the pricing was announced in late July. Since the start of the year, they have lost 85 percent of their value.

NWR's largest shareholder is CERCL Mining, in which Czech financier Zdenek Bakala is the biggest investor, with a 63.6 percent stake. The group had already backed the company's capital restructuring going into the vote.

NWR has so far received consent from 85 percent of secured bondholders but only 65 percent of unsecured noteholders.

It needs the consent of 75 percent by value and 50 percent by number of holders of both bonds, who will take part in votes. (Reporting by Jason Hovet; editing by Jason Neely and Crispian Balmer)