Last week The Financial Times reported that UK Coal were seeking voluntary liquidation. UK Coal is now disputing this according to the BBC.
It seems apparent that UK Coal are in a bad way financially and perhaps they are discussing deals with competitors, so don’t want word of their plight to put off the fat cats? Or maybe they are setting up a new company to run the profitable aspects of the business before liquidation. Whatever is going on it remains clear that this is not a company to trust with your pension nor to restore open cast sites. Lets hope councils realise this and refuse the applications they have in the pipeline.
Reuters also had this article…
UPDATE 2-UK Coal strives to save mines after crippling fire
Wed May 1, 2013 12:14pm EDT
* UK Coal in talks with creditors to stay solvent
* Declines to confirm FT report of new debt restructuring offer
* UK industry struggling to survive in tighter market
By John McGarrity
LONDON, May 1 (Reuters) – Britain’s largest miner UK Coal said on Wednesday it was in talks with creditors to fend off a collapse that would cost up to 2,000 jobs and force power stations to scramble to cover their fuel needs.
Heading a domestic coal sector that already looks under threat, the miner warned in February that a fire that closed its largest mine, Daw Mill, could harm the viability of the whole company unless it got outside help from government or creditors.
“We remain positive that we have an underlying profitable business,” UK Coal, part owned by Coalfield Resources, said in a statement after the Financial Times reported it had proposed a voluntary liquidation and the handing over of its remaining mines to a new company.
for the rest of the story see here.