COAL miner ATH Resources fell into administration on Wednesday night after its lender, Jon Moulton’s Better Capital, called in its loans.
All five of the Doncaster-based company’s open cast pits are in Scotland, where it employs about 330 staff. The firm has blamed falling coal prices for its woes.
Brian Green, Allan Graham and William Wright from “big four” accountancy firm KPMG were appointed as administrators of ATH Resources, although its principal trading subsidiary – Aardvark TMC – is not in administration and continues to trade.
Shares in Aim-quoted ATH – which has debts of about £22 million – were suspended yesterday afternoon but, just two hours later, the firm announced it had entered administration.
ATH had warned shareholders last month that the value of their holdings may be wiped out in a restructuring of the firm. The group’s market value has plunged in recent years, from a high of more than £110 million in 2007 to less than £150,000.
In October its future was thrown into doubt after it called in Deloitte to look at options including restructuring or a sale of the business, which is led by chief executive Alistair Black.
Better Capital bought some of the company’s bank debt, and last week ATH said it had hired KPMG to look at selling its assets.