Fri, 17 May 2013 | ADMINISTRATION
The assets of Aardvark - the main subsidiary of mining group ATH Resources - are being purchased by Hargreaves Services.
South Yorkshire energy and logistics business Hargreaves is putting £10.4 million down to pay for the assets, taking them out of liquidation and saving 237 employees’ positions.
KPMG was brought in as the liquidators after Aardvark could no longer trade solvently.
The troubled firm’s lender Hargreaves Surface Mining (HSML) is to offer new contracts to the 237 staff. The new owner can also now choose to buy the mining sites at Netherton, West Yorkshire, and Duncanziemere, Scotland, which are to continue operating.
ATH entered administration in December after a move by BECAP Capital Coal. Aardvark managed to stay out of administration and was trading as normal at the time.
Gordon Banham, Hargreaves' chief executive, noted: “This transaction brings to an end a long and complex restructuring process. Whilst it has been a lengthy and difficult exercise, we are very pleased with the end result.
“In comparison with an unstructured liquidation, we have saved or created over 230 jobs and been able to continue mining operations at two of the key sites.”
Hargreaves, which had raised £42 million in new funds in April, appears to have gone on a spending spree and is also moving in on a purchase of the assets of coal miner Scottish Resources Group, after it called in the liquidators recently.
Hargreaves chairman Tim Ross commented on the recent dealmaking to a trade magazine: “The UK coal industry is undergoing a major restructuring and we believe this provides Hargeaves with an exceptional opportunity to acquire surface coal mining assets.”
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