Last checked at 8 Aug 2014 07:00
Coalfield Resources Plc
("Coalfield Resources" or "the Company")
Transfer of Pension Trustees shareholding in Harworth Estates to PPF
Harworth Estates Property Group Limited ("Harworth Estates") in which Coalfield Resources holds a 24.9% interest has advised the Company that it has completed the registration of the transfer of the 75.1% interest previously held by the trustees of the Industry Wide mining pension schemes into the name of the Board of the Pension Protection Fund ("PPF"). This transfer has been expected since the Daw Mill fire in February 2013, which led to the insolvency of UK Coal Mine Operations Limited. The PPF have also confirmed that other assets of the UK Coal sections of the Industry Wide Pension Schemes have now transitioned to their control.
The Board of Coalfield Resources does not expect this transfer of ownership of the 75.1% interest to the PPF to materially affect the day-to-day operations at Harworth Estates.
Andrew McKinnon, Chief Financial Officer of the PPF, commented:
"The UK Coal Operations Limited sections of the Industry-wide Pensions Schemes, including their respective interests in Harworth Estates, have transferred to the PPF. We consider Harworth Estates to be a valuable asset and we welcome the ongoing discussions with Coalfield Resources to maximise the value in this business for shareholders."
Jonson Cox, Chairman of Coalfield Resources, commented:
"Coalfield Resources has been in active discussions with the PPF during 2014 leading up to the transfer. Our aim in working with our new co-shareholder is to create a more sustainable shareholder structure for Harworth Estates, which will enable the business to capture the strategic opportunities and underlying value in the portfolio. This will deliver value for the shareholders of both Coalfield Resources and the PPF."
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Notes to Editors
Coalfield Resources plc
Coalfield Resources was, until December 2012, the parent company of the UK's largest coal miner, UK Coal. In one of the most complex restructurings in UK corporate history, Coalfield Resources, which was previously known as UK Coal plc, split its operating business into two separate units - property and mining - and gifted 75% of the property business to the trustees of the mining business pension fund. At the same time, in December 2012, it relinquished control of the coal mining operations to an Employee Benefit Trust, retaining only a minority equity stake which ranked behind the debt owed to the pension funds.
Consequent upon this restructuring, Coalfield Resources effectively became a property company through its 24.9% shareholding in Harworth Estates Property Group Limited, the property business it owns jointly with the former mining companies pension fund.
In 2013, the former mining business suffered a major fire at one of its mines which caused a failure and restructuring of that business. Coalfield Resources no longer has any equity interest in the mining business.
Harworth Estates
Harworth Estates is a leading property and development company owning and managing around 31,370 acres across some 200 projects, with consent for 8,000 new homes. It specialises in regenerating coalfields and brownfield land for industrial and commercial opportunities, low carbon energy projects, residential developments and leisure uses.