It is reported that UK Coal plans to split itself in two as part of a restructuring deal with pension trustees and customers to whom it owes millions.

Britain’s biggest coal producer said it had reached an agreement with key stakeholders.

UK Coal owes its customers and banks GBP 138.3 million and has a pension funding deficit of about GBP 430 million.

It said yesterday that creditors would extend a GBP 90 million support package up to the end of 2015.

The restructuring plan includes splitting the company’s mining and property businesses, with the property business used to service the company’s bank debt.

The mining business will assume a majority of the group’s pension liabilities. Pension funds will receive GBP 30 million annually plus any cash in the mining business from 2014.

Source - scotsman.com

(www.coalguru.com)