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KPMG appointed as Scottish Coal collapses 22 April 2013

KPMG has been appointed to handle the liquidation of Scottish Coal after hundreds of miners were told they no longer had a job over the weekend.

Just under 600 jobs have gone from sites in Ayrshire, Lanarkshire and Fife with only a small percentage of the original workforce securing their jobs to handle the assets during the liquidation process.

KPMG partners Blair Nimmo and Tony Friar were appointed and all operations at the company have ceased with immediate effect.

Blair Nimmo – who is also KPMG’s head of Restructuring at KPMG in Scotland said that In light of Scottish Coal’s poor trading and financial position, there was no other option than to cease trading with immediate effect.

He explained: “It is extremely regrettable that we have had to make so many redundancies but have been left with no other option.

“We would like to thank staff for their co-operation through this difficult process. We will be working with the employees and the relevant government agencies to ensure that the full range of support is available to all those affected.

“We will be looking to secure the sale of certain sites as well as the company’s key assets in the coming weeks. It is still possible that mining operations will continue and offer future employment prospects for at least some of the people who have lost their jobs today.”

Nimmo and Friar were appointed joint provisional liquidators of ‘The Scottish Coal Company Limited’ on 19 April 2013 by the Court of Session in Edinburgh at the request of the company’s directors. Scottish Coal is the main trading subsidiary of Scottish Resources Group Limited.

A fellow subsidiary company, Castlebridge Plant Limited was also placed into administration at the same time.

With a history dating back to 1994 following the privatisation of British Coal, Scottish Coal operates six open cast coal mines in Scotland, located in East Ayrshire, South Lanarkshire and Fife. Together with the plant operator, CPL, the business employed a total of 732 people.

Scottish Coal has been suffering from well publicised difficulties. A combination of falling coal prices, rising operational costs (particularly fuel) and a number of Scottish Coal sites exhausting their reserves has contributed to trading losses and significant cash flow pressures.

Despite significant efforts in recent months, the company was unable to secure the level of investment required to enable the business to continue.

 

 

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