OKD – An example of a successful reorganization?

16. 4. 2018

Distress assets

According to the CTK agency, the mining company OKD has found itself back on its feet after overcoming a very difficult financial situation. OKD’s shares in the Karvina region of the Czech Republic were taken over by the state-owned company Prisko for the cost of nearly CZK 80 million. As a part of this process, the company also had a new Board of Directors installed. With the company saved, over 9500 are able to continue working, both in the mines of Karvina, and along the company’s supply chain.

OKD found itself in financial jeopardy in 2016 due to the fall of coal prices and its piling up of debts. Creditors tried to pick the company apart in court, with claims totaling up to CZK 20 billion. Luckily, the insolvency administrator intervened, and denied most of these claims.

Instead, the creditors, the insolvency administration, and the court approved of a reorganization plan for the company. This included the transfer of all employees to a newly created company called OKD Nastupnicka on 27. March of that year. Since then, the company name has changed to its current name of OKD, with its shares owned by Prisko. The original company renamed itself as Spravce Pohledavek OKD (OKD Receivables Administrator), with the purpose of settling claims and liabilities that they occurred prior to going through the bankruptcy process.

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