Bens Creek Group PLC (AIM:BEN, OTC:BENCF) said it will appoint administrators. It comes after a detailed consideration of the company's current financial situation found no viable proposals to deliver a stable solution to its challenges.
In light of this situation, “The Board has now concluded that the company should consider being placed into administration or undertake an alternative insolvency process in order to protect the interests of creditors and other stakeholders”.
“It is not known at present how much, if any, value will be returned to shareholders following any administration or alternative insolvency process being undertaken for the Company or the conclusion of the Chapter 11 process for the Chapter 11 Companies,” said the statement from the coal miner.
Concerning the ongoing Chapter 11 bankruptcy process for the company's wholly-owned US subsidiaries, Ben's Creek Operations WV LLC, Ben's Creek Carbon LLC and Ben's Creek Land WV LLC, a further court hearing will be held on 6 June 2024 to consider the terms of a final debtor-in-possession financing loan from major shareholder Avani.
Bens Creek shares remain suspended on AIM.