Almost 300 jobs have been saved at UK Coal in a pre-pack deal overseen by administrators from accountancy giant PwC.
The business, which operates three North East surface mines, was acquired by UKCSMR Limited last week having been affected by a global decline in coal prices.
David Kelly, Rob Hunt and Matthew Callaghan were appointed as joint administrators of UK Coal Surface Mines Limited on November 14.
And shortly after appointment, the business and certain of the company’s assets were sold to UKCSMR Limited in a pre-packaged transaction.
UKCSMR is a new vehicle set up by David Bolton, a director of the company, with support from Harworth Estates who were the largest freehold landlord of the Company.
The firm operates three surface mines in the North East including Butterwell and Potland Burn in Northumberland and Park Wall North in County Durham.
David Kelly, joint administrator and PwC partner, said: “The company was part of the UK Coal group which has been impacted by the decline in world coal prices.
“A number of the company’s planning applications for future surface mine sites were also unsuccessful, resulting in historic restoration obligations in excess of forecast profits.
“The sale has preserved the business to allow the continued operation and restoration of the company’s active surface mine sites and all the company’s 279 employees transferred to the purchaser.”