Member Article

Pre-pack deal saves 279 jobs at UK Coal Surface Mines Ltd

In a deal overseen by PwC, all 279 jobs at UK Coal Surfaces Mines Ltd have been saved thanks to a pre-pack deal.

The Company operates four open surface mines in the East Midlands and North East of England.

David Kelly, Rob Hunt and Matthew Callaghan were appointed joint administrators of UK Coal Surface Mines Limited on 14 November 2014.

Shortly after appointment, the business and certain of the Company’s assets were sold to UKCSMR Limited on 14 November 2014 in a pre-packaged transaction.

UKCSMR is a new vehicle set up by David Bolton (a director of the Company) with support from Harworth Estates who were the largest freehold landlord of the Company.

David Kelly, joint administrator and PwC partner, said: “The Company was part of the UK Coal group which has been impacted by the decline in world coal prices. A number of the Company’s planning applications for future surface mine sites were also unsuccessful, resulting in historic restoration obligations in excess of forecast profits.

“The sale has preserved the business to allow the continued operation and restoration of the Company’s active surface mine sites and all the Company’s 279 employees transferred to the purchaser.”

This was posted in Bdaily's Members' News section by Ellen Forster .