Solid Energy Creditors to Receive 45 – 55 cents on dollar

Press Release – KordaMentha

KordaMentha partners and Solid Energy New Zealand Limited (SENZ) Deed Administrators, Brendon Gibson and Grant Graham, have today assessed creditor returns to be between 45 and 55 cents, resulting from the successful conclusion to the SENZ assets sale …31 October 2016

SOLID ENERGY CREDITORS TO RECEIVE 45 TO 55 CENTS ON THE DOLLAR

KordaMentha partners and Solid Energy New Zealand Limited (SENZ) Deed Administrators, Brendon Gibson and Grant Graham, have today assessed creditor returns to be between 45 and 55 cents, resulting from the successful conclusion to the SENZ assets’ sale process.

Messrs. Gibson and Graham were originally appointed Voluntary Administrators to the SENZ group of companies by the SENZ board in August 2015.

In September 2015, having completed their assessment, they recommended that creditors accept the Deed of Company Arrangement (DOCA) which restructured the debt and allowed for an orderly and managed sale of assets. They noted that, in liquidation, the assets were likely to only raise between 15 and 20 cents in the dollar and 35 to 40 cents via a managed sale of assets under the DOCA.

“When these sales settle, it now appears creditors will receive between 45 and 55 cents in the dollar. It took some time, but this is a very positive outcome for the SENZ board, staff and creditors. With key mining assets sold as going concerns, SENZ anticipates a good majority of the jobs will transfer to the new owners.

“Not only does this demonstrate that voluntary administration can work when all parties pull together, but the process can provide creditors with a far better outcome than liquidation.

“This is great news for the staff and communities where SENZ operates. It’s a significant achievement and the Board and management team are to be congratulated,” Mr Gibson said.

The sales of Solid Energy’s Stockton, Rotowaro, Maramarua, New Vale, Ohai, Strongman and Liverpool mines are conditional and expected to settle in the first half of 2017.

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