LONDON (REUTERS) - UK Coal Operations, partly owned by Coalfield Resources, has proposed a voluntary liquidation and the handing over of its remaining mines to a new company, the Financial Times reported, after a fire closed Britain's largest coal mine.
The Financial Times said the proposal would mean creditors would receive 32 pence for every pound of debt.
The principal losers would be four power generators who had prepaid for coal production: EDF SA, Drax Group, SSE Plc and E.ON.
The proposal follows a fire at the Daw Mill Colliery in Warwickshire, which led to the mine's closure and the loss of at least 550 jobs.
UK Coal spokesman Andrew Mackintosh told the Financial Times that the fire - the costs of which included 100 million pounds (S$191 million) in equipment and 160 million pounds in coal - had left the company with insufficient funds to meet running costs, and made further restructuring inevitable.
UK Coal could not be immediately reached for comment outside regular business hours.