ATH crashes on news of restructuring
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.
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".
The firm said its lenders, HSBC and Clydesdale Bank had sold some of its banking facilities and their related rights to Guernsey-based BECAP Fund.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
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.
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
-
Revolut finally bags a UK banking licence – what next for the fintech?
Revolut has finally been granted a UK banking licence following three years of negotiations with the regulator
By Kalpana Fitzpatrick Published
-
Could Labour impose a “double death tax” of more than 50%?
Speculation is mounting that capital gains tax will be reformed in the Budget - and one option is to charge bereaved families the tax on top of inheritance tax. We explain how it could work
By Ruth Emery Published