Shareholders agree to Coalfield Resources rights issue

28th Aug 2013 08:26

Coalfield Resources shareholders have agreed to a proposed rights issue, enabling the group to repay costs which resulted from its restructuring earlier this year. The 2p-a-share rights issue will raise around £5m after expenses, which will be used to repay a bank loan taken out in May. Coalfield used to be part of UK Coal, which collapsed following a major fire at the company's Daw Mill pit in Warwickshire in February. A restructuring was carried out which resulted in its mines being taken over with the backing of Britain's pension rescue scheme, the Pension Protection Fund. The company, which has ended its role in running the mines, earlier this year reported a first half loss of £1.7m, due mainly to write-offs of mining debts and unrecoverable restructuring fees. NR