Contractors push for liquidation of Pike River company

Thursday 14th April 2011 1 Comment

A group of creditors of Pike River Coal are pushing to turn the receivership of the company into a liquidation process.

A group of 43 unsecured creditors owed almost $5 million are pushing for liquidation in the hope that things will happen faster, and the Government may have options as Pike's access agreement to government-administered land will end.

The group intends to commence the liquidation process this week. Although the receiver will continue to control the disposition of assets, a liquidator will be able to review all payments the receivers have made and are proposing to make.

"It is distasteful the way things have dragged on and liquidation may mean the process speeds up," said the group's spokesman, Peter Haddock. "It also will be an opportunity for an outside review of the receivers' actions."

An explosion at the mine last November killed 29 workers and ended a business venture that was just starting to produce coal after years of setbacks. Receivers were appointed in December.

Receivers can keep a company trading and they act for those who appointed them. In a liquidation a company is wound up and there is a priority order to the payment of creditors.

NZPA

Comments from our readers

On 14 April 2011 at 10:45 am Pike investor said:

Lets shaft all the share some more. I have lost enough money but no one cares about that.