Name change for UK Coal but restructure proves elusive

SHAREHOLDERS have backed a change of name at UK Coal as the company warns it still faces hurdles to complete a restructuring.

The company will be known as Coalfield Resources once the restructuring process is complete.

UK Coal said it has received approval from the Pensions Regulator for its plans but admitted it still needs backing from “some third parties and certain regulatory clearances”.

The Doncaster-based company has previously warned that a failure to restructure could trigger a sequence of events leading to its administration.

Third quarter coal production was 1.6m tonnes, down from 1.8m tonnes last year with the year so far seeing 4.9m tonnes mined compared to 5.9m tonnes.

The firm admitted continuing problems at the Daw Mill mine in Warwickshire are hitting output rates.

Property sales netted the company £6.5m in the third quarter, up from £4.1m last year.

Speculation over the weekend suggested the firm, which employs 2,500 people, could be at risk of administration unless a restructuring plan was agreed.