UK Coal shareholders have backed a key stage of a rescue plan, including the change of name to Coalfield Resources.
It said without shareholder support it might struggle to meet the December 31 restructuring deadline, leaving it breaching banking covenants and facing administration.
The plan includes the company moving from a premium stock market listing to a standard listing, which will cut costs and let it make changes such as splitting the group into separate mining and property arms, without seeking prior shareholder approval.
As Britain's biggest producer of coal, Doncaster-headquartered UK Coal operates surface mines including Park Wall North, near Crook in County Durham, Butterwell, near Morpeth, and Potland Burn, near Ashington in Northumberland as well as three deep mines in the Midlands and Yorkshire. About 90 per cent of the total annual output is used to generate 5 per cent of Britain's electricity requirements.
But poor performance from its mines, particularly Daw Mill in Warwickshire, allied to falling coal prices and a crippling £430m pension deficit, have brought about a need for the restructure.
UK Coal, which employs about 2,500 workers, said the restructuring was a complex process and still requires the final approval of some third parties.
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