“The company, controlled by Bakala’s BXR Mining NV, is threatening bondholders and shareholders with the fire sale of almost all assets unless they approve its restructuring plan that would increase the number of shares 25 times and force creditors to accept a reduction of their debt holdings,” Bloomberg reported yesterday.

NWR reportedly invited offers for its coal mining operations in the Czech Republic and Poland yesterday, which boosted bankruptcy fears with the company even saying a successful sale “could leave certain categories of stakeholders with minimal or no recoveries”.

“The shares slumped 26 per cent to a record low in Prague,” the newswire reported.

NWR, which has posted six consecutive quarterly losses, caved to Czech government pressure in April to keep its Paskov mine open until 2017.

The mine reportedly employs a workforce of 3000 and loses $US80 million ($A85 million) a year.