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PwC appointed administrator of UK Coal

London - Pricewaterhouse Coopers (PwC) has been appointed administrator of Britain's biggest coal producer UK Coal, PwC said on Tuesday.

UK Coal has struggled to break even in recent years because of rising costs, hefty pension liabilities and competition from cheap imports.

"Immediately following the appointment, the administrators completed a restructuring of the majority of the company's business and assets to a new company called UK Coal Production and its trading subsidiaries, which include, UK Coal Kellingley, UK Coal Thoresby and UK Coal Surface Mines," PwC said in a statement.

The future of UK Coal, which in 2012 produced over a third of Britain's domestic supply of the fuel, has been increasingly in doubt after a major fire in March prompted the closure of its largest mine, Daw Mill.

Administration is a procedure under insolvency laws which allows insolvent entities to carry on their businesses while their affairs are managed by an outside agency.

"Regrettably, there will be 280 job losses at Daw Mill," PwC said, but added that almost 2 000 company jobs had been protected by agreeing a compromise with creditors, as well as through general restructuring under a separate insolvency process.

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