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Scottish Coal liquidators say in talks over parts of business

Fri, 03rd May 2013 16:33

LONDON, May 3 (Reuters) - Liquidators for Scottish Coal,KPMG, said on Friday they were in talks regarding the possiblesale of parts of the business.

The company ran out of cash last month, putting 600 jobs atrisk and closing mines that are major suppliers to Britain'spower stations.

"Over the last few days we have been in discussion with avariety of parties who have expressed an interest in thebusiness or more precisely certain parts of it," accountancyfirm KPMG said.

No names were disclosed.

Last month Hargreaves Services, Britain's secondbiggest producer of coal, raised 42 million pounds ($65.39million) to buy rival operations and develop new mines.

Venture capitalist John Moulton's company Better Capital has been reported to be in talks to buy coal miner ATHResources, which went into administration late last year.

Britain's coal industry is struggling to survive in the faceof competition from imports and rising costs.

Its largest producer, UK Coal, said this week it wasin talks with creditors to save 2,000 jobs and keep mines openthat supply large utilities such as Drax, Scottish andSouthern Energy and subsidiaries of E.ON andRWE.

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