Purchase of Secured Debt

RNS Number : 0445Z

Hargreaves Services PLC

01 March 2013

 



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: [phone]
Gordon Banham, CEO
Iain Cockburn, Finance Director
Buchanan	Tel: [phone]
Mark Court / Fiona Henson / Sophie Cowles
PPS Group	Tel: [phone]
Donald Anderson
N+1 Singer (Nomad & Joint Broker)	Tel: [phone]
Sandy Fraser / Nick Owen
Jefferies Hoare Govett (Joint Broker)	Tel: [phone]
Sara Hale / Harry Nicholas

 

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