For immediate release |
1 March 2013 |
HARGREAVES SERVICES PLC
("Hargreaves" or the "Company")
Purchase of Secured Debt
Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuels and bulk material logistics, today announces that, following the recent Administration of ATH Resources PLC ("ATH"), Hargreaves' subsidiary, Hargreaves Surface Mining Limited, has purchased secured debt owing by Aardvark TMC Limited (the principal operating subsidiary of the ATH Group) and certain other companies within the ATH Group. The debt has a face value of £12.5m and is secured over the assets of Aardvark. The debt has been purchased from Becap Capital Coal Limited for a cash sum of £5.0m.
Hargreaves has undertaken this transaction after extensive discussions with many of the key stakeholders of ATH, including management, landowners, local authorities and the Scottish government.
It is the intention of Hargreaves to lead a project to restructure the Aardvark business in conjunction with management and the major stakeholders. The objectives of the restructuring are two-fold. The first is to create an investment platform that allows viable sites to continue to operate and to safeguard employment. The second is to create a new structure and process, independent of ongoing operations, to help to address outstanding historic restoration obligations. Any profit made by Hargreaves on the acquisition of the debt will be made available to support the historic restoration.
A further announcement will be made when appropriate.
Gordon Banham, CEO of Hargreaves, commented: "We look forward to working with the relevant stakeholders. We have been actively seeking our own opportunities to invest in surface mining in Scotland and so we welcome the opportunity to participate in this project. Our intention is that our assistance will help to safeguard jobs, and establish our credentials as a key participant in the Scottish mining industry."
Fergus Ewing, Minister for Energy, Enterprise & Tourism commented: "We are pleased that Hargreaves has stepped forward to lead this initiative. The Scottish government remains very supportive towards the coal mining industry in Scotland. In addition, any opportunity to preserve jobs during difficult economic times is very positive. We are also pleased with any initiative that brings additional focus and funding to deal with legacy restoration liabilities."
For further details:
Hargreaves Services |
Tel: 0191 373 4485 |
Gordon Banham, CEO |
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Iain Cockburn, Finance Director |
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Buchanan |
Tel: 020 7466 5000 |
Mark Court / Fiona Henson / Sophie Cowles |
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PPS Group |
Tel: 0131 226 1951 |
Donald Anderson |
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N+1 Singer (Nomad & Joint Broker) |
Tel: 020 7496 3000 |
Sandy Fraser / Nick Owen |
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Jefferies Hoare Govett (Joint Broker) |
Tel: 020 7029 8000 |
Sara Hale / Harry Nicholas |
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