London (Platts)--19Nov2012/506 pm EST/2206 GMT
Shares in beleaguered UK thermal coal miner ATH Resources nosedived by over 50% Monday as the firm said it faces major restructuring after some of its debt was bought by an investment fund. In a trading update, ATH said it had notified by its lenders, HSBC and Clydesdale Bank, that BECAP Fund LP has acquired some of its banking facilities and their related rights. "As a result of initial discussions with representatives of BECAP Fund LP the board understands that a comprehensive review and restructuring of the group's business will be required and that, given the existing level of liabilities in the company, it is unlikely that existing shareholder value will be maintained," ATH said, adding that BECAP may be prepared to inject new capital into a restructured business. Last month, ATH said weak coal prices were threatening its margins, announcing sales volumes for the 2011-12 fiscal year ending September 30 of 1.6 million mt, flat to the previous year. Article continues below...Request a free trial of: International Coal ReportInternational Coal Report and its daily companion, Coal Trader International, deliver expert and respected price assessments for coal trading in the Atlantic and Pacific markets including price assessments for European CIF ARA, FOB Newcastle, Richards Bay and Indonesia.
Shares in beleaguered UK thermal coal miner ATH Resources nosedived by over 50% Monday as the firm said it faces major restructuring after some of its debt was bought by an investment fund. In a trading update, ATH said it had notified by its lenders, HSBC and Clydesdale Bank, that BECAP Fund LP has acquired some of its banking facilities and their related rights. "As a result of initial discussions with representatives of BECAP Fund LP the board understands that a comprehensive review and restructuring of the group's business will be required and that, given the existing level of liabilities in the company, it is unlikely that existing shareholder value will be maintained," ATH said, adding that BECAP may be prepared to inject new capital into a restructured business. Last month, ATH said weak coal prices were threatening its margins, announcing sales volumes for the 2011-12 fiscal year ending September 30 of 1.6 million mt, flat to the previous year.
Article continues below...
International Coal Report and its daily companion, Coal Trader International, deliver expert and respected price assessments for coal trading in the Atlantic and Pacific markets including price assessments for European CIF ARA, FOB Newcastle, Richards Bay and Indonesia.
With three operational mines in Ayrshire, ATH has supply agreements with utilities Drax Power, E.ON, Scottish Power and EDF. By early afternoon Monday, ATH's share price had slightly recovered to 38 pence, still down over 55% on the day, having fallen to below 30 pence earlier in the session.--Gareth Carpenter, gareth_carpenter@platts.com--Edited by Richard Rubin, richard_rubin@platts.com
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