Czech miner NWR closer to winning bondholder support for restructuring

* Capital (Other OTC: CGHC - news) restructuring involves debt reduction, new equity

* Move (NasdaqGS: MOVE - news) gets consent from 84 pct of secured bondholders

* Also accepted by 65 pct of unsecured bondholders

* Needs 75 percent consent by value of both bonds (Adds share price, bondholder, analyst, company confident deal will go through)

By Jan Lopatka

PRAGUE, July 15 (Reuters) - Czech coal miner New World Resources (NWR) said it had moved closer to securing required levels of consent from bondholders for a debt and equity restructuring plan needed to keep the company afloat.

NWR, a major employer in the north-east of the Czech Republic with around 15,000 workers, has been hit by a decline in global coal prices, causing deep losses that sent its shares down by more than 99 percent from all-time highs set in 2008.

The company, majority owned by a group of investors including billionaire Zdenek Bakala, wants to cut its 825 million euro debts - mostly in secured and unsecured notes due in 2018 and 2021 - by 325 million euros.

The group said it had so far secured the consent of 84 percent, by value, of holders of its secured and 65 percent of its 2021 unsecured bonds for the restructuring plan that involves a combination of a cash payment and a swap for new debt.

NWR shares gained 11.6 percent to 4.8 crowns at 0953 GMT after the announcement, which follows the expiry of a July 11 deadline for an "early bird" premium - consisting of 0.25 percent of the face value of an investor's bond holdings - for those who quickly agree to the terms.

NWR needs the consent of 75 percent by value and 50 percent by number of holders of both bonds, who will take part in votes to be called on the proposed transactions.

NWR spokesman Joe Cook said based on the acceptance so far, and given that many of the bondholders that have not yet given consent are hard-to-track retail investors, the company was confident the deal would be approved and implemented.

BIGGER LOSSES

Some of the unsecured bondholders had earlier protested at the terms of the capital overhaul, but the group raised the pressure on investors earlier this month, saying it would start the sale of its main mining assets if the deal falls through, which could mean bigger losses for the unsecured bondholders.

Ondrej Matuska, a senior portfolio manager at Conseq Investment Management which holds 2 million euros worth of the unsecured bonds, said his firm had accepted the terms because they promised a marginally better return than liquidation of the company.

"We believe that the underlying economics of the coal business will improve in the coming years, the question is by how much and how fast it happens," Matuska said. "With regard to that, we would prefer the company to continue operating, we believe that our recovery (on the investment) will be slightly higher."

The unsecured bond was bid at 14 cents to the euro on Tuesday.

Analyst Petr Bartek at Ceska Sporitelna bank said in a note he had expected the 75 percent threshold to be reached already in the "early bird" period, although the acceptance level was not too far from the bar and talks would likely continue.

The restructuring plan includes the injection of 150 million euros in new equity, which will dilute existing shareholders who do not take part in the capital increase at a 25 to 1 ratio.

Existing controlling shareholders will contribute half of the new capital, maintaining their majority ownership of the company.

The company has said it aimed to complete the capital overhaul, advised by Blackstone (NYSE: BX - news) , in September.

Pending assessment of prospects for the restructuring, the company said it would use a grace period of up to 30 days for the payment of a coupon on the unsecured bonds that was due on Tuesday. (Additional reporting by Robert Muller; Editing by David Holmes)