Atlantic Carbon Group PLC (05315929): administration
- Status
- Administration ended
- Administration began
- 2019-07-22
- Administrators
- Clare Kennedy, Alastair Paul Beveridge, Simon Jonathan Appell
- Administrators' firm
- AlixPartners
- Formerly
- Atlantic Coal PLC; Summit Resources PLC
- Incorporated
- 2004-12-17
- Location
- Manchester
- Industry
- 05102 Open cast coal working
Why it went into administration
- Sustained trading losses
From the administrators' statement
The Company is a UK registered holding company which was incorporated in December 2004. It is part of a wider group engaged in the mining and production of high grade anthracite (the Group). The Company’s subsidiary entities are registered in the United States of America (US) and oversee the operation of mines and processing plants in Pennsylvania. The Company’s principal assets are its 100% shareholdings (the Shares) in Atlantic Carbon Group Inc. (ACGI), Newcastle Anthracite Company and The Central Pennsylvania Anthracite Company, LLC (together the Subsidiaries).
The Group has faced challenging trading conditions since 2018, primarily as a result of a change in its mining cycle from coal extraction in 2017 to waste extraction in 2018. Additionally, a physical transition of operations was undertaken following the development of a new mining site. These factors resulted in significantly reduced production together with increased operating costs, which compounded financial losses from the previous year.
The Group required additional capital to maintain operations during this period, which was provided by the Secured Creditor. Whilst increased production and reduced operating costs were anticipated following completion of the transition of operations, by July 2019 the Secured Creditor had advanced debt totalling approximately £37.3 million including accrued interest and charges. In the months preceding the Administrators’ appointment, several events of default had occurred which had not been remedied.
Administrators' statement of proposals (2019-09-05) · Companies House register