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.

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

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.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

"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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.