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.
___________________________________________________________________________
Related articles:
Hargreaves Services buys assets out of liquidation
View the latest administrations
Represents an opportunity for an acquirer seeking a prolific wholesaler offering both ambient and frozen product.
Long-established print management and design company managed by an experienced team who will remain in situ post acquisition.
Established approximately 5 years ago, the company is a highly regarded recruitment agency based in the East of England. The company serves the HGV logistics, construction, mechanical and electrical services (M&E), and criminal justice sectors, offer...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.