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Liquidators confirm interest in Scottish Coal

KPMG says it is in talks to possibly sell parts of Scottish Coal, but the future of its mines remains “far from clear” in what it described as an unprecedented liquidation.

Staff Reporter
Liquidators confirm interest in Scottish Coal

Joint liquidator Blair Nimmo made the statement two weeks after nearly 600 people were made redundant by the company.

Nimmo said the liquidation of Scottish Coal presented an extremely complex set of issues affecting a wide variety of stakeholders, but that a number of parties had expressed interest in parts of the business.

“While discharging our statutory responsibilities as liquidator we are also endeavoring to liaise with key stakeholders such as the Scottish government, various local authorities and SEPA in an open and consensual manner,” Nimmo said.

“Site security and maintenance have been a key priority, which is why we have retained a significant number of staff to assist in this area.

“In tandem with this over the last few days we have been in discussion with a variety of parties who have expressed an interest in the business or more precisely certain parts of it.

No names were disclosed, but Hargreaves Services has been speculated after it raised 42 million pounds last month to expand its operations and buy new mines.

Nimmo said the liquidators aimed to find the best possible solution as quickly as possible.

“Many aspects of this insolvency are unprecedented and the likely final outcome is far from clear, but it is essential that all parties continue to work together in a constructive and professional manner to find the best solution possible.”

Scottish Resources Group subsidiary Scottish Coal operated six open cast mines in Easy Ayrshire, South Lanarkshire and Fife. Together with plant operator Castlebridge Plant, it employed 732 people.

Castlebridge has also been placed into administration.

A combination of falling coal prices, rising operational costs and a number of the company’s sites exhausting their reserves was cited for the “significant cash flow pressures”

Immediately following the insolvency appointment, 590 employees were made redundant and all operations ceased.

The remaining 142 employees have been retained to assist in securing the sites.

A taskforce was set up after the company collapsed in a bid to protect as many jobs as possible.

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