UK Coal said it is close to putting its complex restructuring into action after winning the backing of shareholders.
The Doncaster-based miner said it has changed its stock market listing from premium to standard, a key element of proceeding with the restructuring, writes John Collingridge.
“The substantive terms and conditions of this complex restructuring have now been agreed and are in a form substantially similar to those set out in the circular,” said the embattled mining and property group.
“UK Coal anticipates that the restructuring will be implemented over the coming weekend and will notify the market of the outcome of this process early next week.”
The debt-laden company won the backing of shareholders in November for its turnaround.
Effectively a debt-for-equity swap with its pension funds, shareholders will be left with less than a quarter of the group’s brownfield property business. Earnings from its mines will be ring-fenced and ploughed into the pension schemes.
The complex plan was drawn up to fund its £430m pension deficit, invest in its mines and develop its land portfolio.
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Tuesday 21 May 2013
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