About 2,000 jobs were saved yesterday as eight mines formerly owned by UK Coal were rolled into a new company in a pre-pack administration.
David Kelly, of administrator PwC, said the deal also “guarantees continued supply of electricity to the UK and keeps the lights on”.
UK Coal, which supplies 5 per cent of the UK’s energy needs, was left on the verge of collapse after a devastating fire that closed its Daw Mill pit in Warwickshire earlier this year.
The deal preserves the company’s other mines and largely protects payments for 7,000 pension fund members.
The Pension Protection Fund is taking on the group’s pension schemes as part of an arrangement which will see it acquire an interest, through a series of debt instruments, in a new company that will control the eight mines.