Acting chairman Andy Coupe would not speculate on whether the company might fail but said there were "a number of potential outcomes" from current discussions with its banking consortium.
Asked whether Solid Energy was depending for its ability to trade on its "implicit government guarantee", Key said: "No. It still has equity and cash in the bank."
"We can see an issue coming. It is not about current performance or any immediate difficulty in meeting our commitments" acting chair Andy Coupe said