ATH Resources, one of the UK's largest coal producers, said it faced a comprehensive review and restructuring of its business after some of its debt was bought by an investment fund.
It said in light of the development, and given the existing level of liabilities, "it is unlikely that existing shareholder value will be maintained".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"As a result of initial discussions with representatives of BECAP Fund the board understands that a comprehensive review and restructuring of the Group's business," the statement said.
"Following completion of the review the new lender may be prepared to inject new capital into a restructured business."
Shares dived 54.5% following the announcement, leaving them 98.9% down on a year ago.
-
London claims victory in the Brexit warsOpinion JPMorgan Chase's decision to build a new headquarters in London is a huge vote of confidence and a sign that the City will remain Europe's key financial hub
-
Rachel Reeves's Autumn Budget: What it means for the UKOpinion A directionless and floundering government has ducked the hard choices at the Autumn Budget, says Simon Wilson
