Shares in UK Coal rose strongly on Monday morning following news that the company had completed its restructuring.
The group confirmed that the restructuring of the business, which began on March 14th, had been completed and announced a raft of changes to its board of directors
UK Coal will be renamed Coalfield Resources PLC later on Monday. The company's operations have been restructured into two separate businesses comprising the Mining Division, under UK Coal Mine Holdings Limited, and the Property Division, under Harworth Estates Property Group Limited.
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Control of the Mining Division has passed to a newly established Employee Benefit Trust which holds shares representing 67% of the voting, and 10% of the economic rights in Mine Holdings for the benefit of current and future employees of the Mining Division.
The company retains 90% of the economic, and 33% of the voting, rights in Mine Holdings, but the company's and EBT's shareholding both rank behind the debt to the Pension Funds.
The company owns 24.9% of Harworth Estates, with 75.1% having passed to the Pension Funds in return for a £30m cash injection and their support to the mines.
As a result of the restructuring, multiple changes were made to the board of directors. Among the many changes detailed by the company, David Brocksom, Finance Director of the company, will step down on December 31st although he will continue to remain available under contract for some months to ensure a successful transition.
Owen Michaelson has stepped down as a director of the company to become the Chief Executive of Harworth Estates with immediate effect. Gareth Williams has also stepped down as a director of the company to take on the role of Managing Director of Mine Holdings in the short term. Gareth will leave the group on February 28th.
Jonson Cox, Chairman of UK Coal, said: "The restructuring has helped to safeguard 2,500 highly skilled and well-paid jobs, a skilled supply chain, and created a funding plan for the £450m pension deficit that UK Coal has been burdened with. Without this restructuring, the costs would have fallen by now to the British taxpayer and the Pension Protection Fund."
Shares had risen 10.34% to 8p by 10:34.
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