Miner NWR warns of insolvency before mid-May if no deal soon

* NWR says waiting for formal response to proposals

* Looking to restructure with state help or sell to government

* State remains reluctant to help, but worried about layoffs (Adds quotes, details on aid proposal, background)

By Jason Hovet and Jan Lopatka

PRAGUE, April 28 (Reuters) - Czech coal miner New World Resources' (NWR) main business unit OKD will run out of money around mid-May and will need to file for insolvency before that unless the government and creditors agree a restructuring deal soon, Chairman Gareth Penny said on Thursday.

The company, which employ around 13,000 people in the Czech Republic, has been hit by weak demand and low coal prices.

Penny said the government had not formally responded to its various proposals and NWR needed a clear commitment to negotiate by Friday, but added it was still possible to find a deal.

"If we can't get...dialogue going very, very soon, by default we will end up in a bankruptcy situation," Penny said on a call with Reuters and Bloomberg.

"So OKD has probably got money left until mid-May. And at that point it runs out of any money to continue its operations and even before that it will clearly have to file for some form of bankruptcy."

The finance ministry had no immediate comment on Thursday.

On Wednesday, Czech finance minister Andrej Babis said no meeting had been set up with creditors so far this week.

The government has been reluctant to provide aid that would benefit NWR's shareholders but also fears insolvency could lead to a collapse of the mining group, which would hurt the broader economy.

NWR is controlled by a group of bondholders, known as AHG, which holds 60 percent of voting rights and about two thirds of the company's debt.

Penny said NWR's owners and creditors had proposed to either restructure OKD with aid or sell the company to the state, and to write off some 450 million euros (about $510 million)in debt, leaving the firm with around 115 million euros to repay.

Some parts of the NWR group are in default now because the firm has breached covenants related to a 35 million euro credit facility.

NWR made a loss before interest, tax, depreciation and amortisation of 4 million euros in 2015. It (Other OTC: ITGL - news) ended 2015 with net debt of 298 million euros, and cash of 86 million euros.

AHG consists of Ashmore Investment Management Limited, Gramercy Funds Management LLC and M&G Investment Management Limited. ($1 = 0.8825 euros) (Editing by Susan Thomas)