New World Resources (NWR)’s shares have been suspended from trading on the London Stock Exchange after the group’s coal mining subsidiary OKD filed for insolvency with the Czech court.

Prague Stock Exchange and Warsaw Stock Exchange are currently processing a request from NWR to suspend trading of its shares. “As OKD is the only trading subsidiary of the NWR Group, the likely impact of the insolvency of OKD is that the remainder of the NWR Group will be wound up or broken up in an orderly manner,” NWR says in a statement seen by Kallanish. “If this occurs, it is expected that there will be very minimal or no returns to the shareholders of NWR.”

The insolvency petition was filed after NWR failed to reach an agreement with the Czech government and its 60%-owner Ad Hoc Group (AHG) on restructuring liabilities and securing liquidity for OKD.

Earlier this week NWR said: “Information provided to the Czech Government and the AHG to date gives a clear picture: OKD’s financial position is very weak and it urgently requires an external injection of money to be able to continue trading and to meet its financial liabilities, including paying its workers.”

OKD said last month that bankruptcy is the worst possible solution for the firm. “Aside from the economic and social impacts it could also lead to an ecological catastrophe in the Moravia-Silesia region,” said OKD chairman and ceo Dale Raymond Ekmark.

The European coal sector is going through a tough time, with NWR’s fellow miner Jasztrebska Spolka Weglowa, across the border in Poland, also undergoing major restructuring. NWR’s 2015 coking coal sales decreased to 4.25 million tonnes from 4.76mt in 2014.