PricewaterhouseCoopers have completed an immediate restructuring of UK Coal Operations Limited, the UK’s largest coal mining company.
Over 2,000 jobs have been preserved across the UK Coal group, although 280 staff at the Daw Mill colliery have been made redundant.
David Kelly, Robert Hebenton, and Ian Green of PwC were appointed joint administrators of UK Coal Operations Limited today (9 July).
Kelly, partner at PwC, said: “Despite the intense pressures that the Companies have been under following the catastrophic fire at Daw Mill in February 2013 and the confirmation of the Daw Mill mine closure in March 2013, 2,000 jobs have been preserved by the restructuring including 120 former Daw Mill miners.”
Administrators completed a restructuring of the majority of the company’s business and assets to a new company called UK Coal Production Limited and its trading subsidiaries, which include, UK Coal Kellingley Limited, UK Coal Thoresby Limited and UK Coal Surface Mines Limited.
As part of the restructuring the administrators were able to secure on-going production by agreeing a compromise with major creditors, including the defined benefit pension schemes and the Pension Protection Fund (“PPF”).
UK Coal Production Limited and its trading subsidiaries will not be owned by the PPF, but the PPF will retain economic benefit through substitute debt instruments.
Kelly said: “The impact of the Daw Mill fire could not have been predicted and led to major losses for UK Coal. Since then, the management team and key stakeholders have been working to find a solution to save the business.
“This deal represents the best outcome for the creditors who would have lost virtually everything if operations had ceased trading.”