ATH Ath Resources

TIDMATH

RNS Number : 8375E

ATH Resources plc

16 May 2013

16 May 2013

ATH Resources plc - in administration

("ATH" or "the Group")

ATH Resources PLC announces that yesterday the Directors of Aardvark TMC Limited (the Company), the Group's main trading subsidiary had concluded that the Company be wound up voluntarily and had convened a meeting of the members of the Company, at which ATH (as sole shareholder) resolved to wind up the Company and appointed Mark Granville Firmin, Brian Green and Howard Smith of KPMG LLP as Joint Liquidators for the purpose of such winding up.

Given the significant restoration liabilities of the Company, and the failure to secure additional investment to fund new mines due to the collapse in the price of coal, the Company (with the assistance of KPMG LLP) had been exploring options for a consensual, solvent, restructuring of the business in conjunction with its senior lender, Hargreaves Surface Mining Limited ('HSML'). In parallel, the Directors had also been developing contingency plans that would involve insolvency with a view to preserving the Company's operations and employment, but avoiding a compulsory liquidation of the Company. The Company was unable to secure the necessary stakeholder support to implement a solvent or consensual option, and the Board was left with no choice but to seek to wind up the Company.

In recommending the voluntary winding up, the Board has facilitated a plan whereby HSML has acquired certain assets of the Company. All 237 employees are to be offered new contracts of employment by HSML. As part of the arrangement HSML also has the option to acquire the operating sites at Netherton and Duncanziemere once certain conditions have been satisfied. In the meantime, HSML will provide full site services to ensure that the mines continue in operation.

In light of today's developments, shareholder value in ATH is negligible.

This information is provided by RNS

The company news service from the London Stock Exchange

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