Tue, 02 Jul 2013 | ADMINISTRATION
UK Coal Operations is to be put through a pre-pack administration that will save about 2,000 jobs.
PricewaterhouseCoopers is to manage the proceedings over the next two weeks for Britain’s biggest coal mining firm, which runs three of the last remaining deep pits in the country.
The government-backed Pension Protection Fund (PPF) is to buy the workable assets from the administrators while also taking on the coal firm’s £543 million pension bill and pensions scheme. The current 6,800 pension scheme members will see a drop in benefits as a result of this transferral, though the move will also secure jobs.
The scheme for distressed pension funds, PPF, will also inherit two deep mines at Kellingley in North Yorkshire and Thoresby in Nottinghamshire in the rescue deal, alongside six surface mines and UK Coal Operation’s 75 per cent holding in property firm Harworth Estates.
The business has battled its way though tough times over the past few years. It had fought its way back to profits in 2011, following four years of losses. More recently, it suffered a fire at the Daw Mill colliery in February 2013, which lead to the loss of 650 employees’ positions. It then sought a voluntary liquidation in May 2013.
The Daw Mill colliery, in Warwickshire, is to be passed over to the Coal Authority. Before the fire, the site provided about 5 per cent of the nation’s energy quota, and 28 per cent of the group’s output.
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