Industry and Trade Minister says only thing which can save OKD is if owner lowers demands

Industry and Trade Minister Jan Mládek has said that the only way that difficulties surrounding the ailing OKD mining company have a chance of being resolved without insolvency, is if the owner, the Ad Hoc Group, lower demands; otherwise insolvency will be the next step. The minister made the statement after the cabinet meeting on Monday, in which the troubled OKD (owned by NWR which belongs in turn to Ad Hoc) was only indirectly discussed. OKD management is to meet over the possibility of insolvency on Tuesday. Recently Ad Hoc offered to sell the government the company shares alone for around 3.2 billion crowns which the minister turned down as largely worthless. On Friday, the government made clear it would not step in but instead focus on helping miners who would be laid off. OKD employs almost ten thousand people.

Author: Jan Velinger