UK-based coal producer ATH Resources will be put up for sale, having failed to generate enough capital to continue its future operations.
The company owns surface coal mines in East Ayrshire, Dumfries and Galloway and Fife, as well as in Grievehill and Glenmuckloch, Scotland.
A decline in global coal prices saw the company delaying its expansion plans in June 2012 resulting in a sharp fall in its share prices.
Consultations with key stakeholders, including the company's lenders, are continuing but developments over the past week have led the directors to believe that the company is "unlikely to attract the level of capital required to continue operating without restructuring the group," ATH said in a statement.
ATH brought down its liabilities from £23.5m to £18m, but expenditures would increase to meet operational costs from December, reported the BBC.
The company has instructed Deloitte to assist the board in considering the merit of any proposals from parties who may be interested in acquiring the business.
The company has contributed a significant portion of electricity production in the UK and is in partnership with three main electricity generating companies in the region to supply coal.
Image: A decline in global coal prices saw ATH delaying its expansion plans in June 2012 resulting in a sharp fall in its share prices. Photo: FreeDigitalPhotos.net.