Pike River insurers to pay out $80m
Unsecured creditors to get $10m slice of the pie.
Pike River’s insurers will pay $80 million over the explosion that killed 29 men and sent the company into receivership.
The receivers and major shareholder New Zealand Oil and Gas (NZX:NZO) have agreed that some of the settlement will go to Pike River’s unsecured creditors, including contractors and former employees, through an early payment plan.
About $6.3m will be paid to the owners of leased mining equipment arising from their priority rights, leaving about $73.7m to put towards Pike River’s debts.
The Bank of New Zealand is a first ranking secured creditor owed about $23.2m and will be paid in full.
Under the proposal, unsecured creditors will receive about $10.1m in early part-payment.
NZOG will receive about $38.3m as a secured creditor and $3.0m as an unsecured creditor.
It will still be owed about $14.7m in secured debt and $12.1m in unsecured debt.
The mine sales process is ongoing and NZOG expects to recover its remaining secured debt and possibly some or all of its remaining unsecured debt through that sales process.
Chief executive David Salisbury says NZOG recognises the huge and ongoing impact the tragic events have had on the West Coast community.
“Hopefully all of Pike River Coal's creditors can receive full payment when the sale of the mine occurs. However, for the mine workers, contractors and suppliers this has been a very stressful time, emotionally and financially. We therefore support the Receivers using some of the insurance payout to make a voluntary early payment now to all unsecured creditors.”
Niko Kloeten
Mon, 12 Sep 2011
Mon, 12 Sep 2011
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Pike River insurers to pay out $80m
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