Business
Coalfield Resources to focus on property portfolio
Coalfield Resources to focus on property portfolio.
About this update from Harworth Group Plc
[{"type":"text","content":"\n \nRNS Number : 9216I Coalfield Resources PLC 09 July 2013 \n \n\n \nCoalfield Resources plc\nCoalfield Resources plc to focus solely on property portfolio\nfollowing 2013 UK Coal restructuring\nCoalfield Resources plc (\"CfR plc\" or \"the Company\") brings to the attention of the market a statement issued today by UK Coal Mine Holdings Ltd and UK Coal Operations Ltd (\"Mine Holdings\") which confirms that administrators have been appointed to these companies. The statement can be viewed at http://www.ukcoal.com/media/latest-news/.\nContext\nIn December 2012, CfR plc completed a complex and fundamental restructuring following long-term and persistent underperformance at the Daw Mill colliery, and in recognition of the scale of debt to the mining pension funds (\"Pension Funds\") and to the banks. This restructure separated the mining and property businesses. Mine Holdings ceased to be responsible for the Group's bank debt and both Harworth Estates (\"HEL\") and CfR plc ceased to have liability for the c£450m pension deficit. The key features of the 2012 restructure were:\n· CfR plc maintained a minority shareholding in Mine Holdings to provide governance of the mines on behalf of the principal economic beneficiary, the Pension Funds. No economic return was expected from Mine Holdings as all surplus cash was to accrue to the Pension Funds\n· CfR plc ceased to be responsible for running the mines which had formerly been owned by UK Coal Mining ltd\n· The Pension Funds acquired the majority of the shareholding in HEL and injected funds to facilitate the release of value from the £260 million of former coalfield property assets\n· CfR plc retained 24.9% of HEL business for the benefit of shareholders and undertook an active role as an investor, alongside the Pension Funds\nRestructuring of Mine Holdings and consequences for CfR plc\nFollowing the catastrophic fire on 22 February 2013 at Daw Mill colliery and its effect on Mine Holdings, CfR plc has assisted the management of Mine Holdings and all parties in trying to find a solution to...