Pike River receivers seek relief
Pike River Coal and its receivers have sought relief of up to two years from attempts by two landowners it leased property off from cancelling their leases and signing new ones with Solid Energy.
Pike River Coal and its receivers have sought relief of up to two years from attempts by two landowners it leased property off from cancelling their leases and signing new ones with Solid Energy.
In the Wellington High Court today, Pike River lawyer Mark O'Brien said O'Malley Farming and the R W Brown Family Trust, which had leased land to Pike for infrastructure related to the mine, terminated the leases after the company was placed in receivership.
Both then signed leases for the same land with government-owned miner Solid Energy.
Mr O'Brien said the infrastructure on the land, storage, loading and rail facilities, was critical to the operation of the mine and if it was not there the value of the mine would be reduced, which would make it harder for the company's receivers to sell it and recover money owed to creditors.
Receivership alone was not reason enough to terminate the original 25 year leases, he said, especially as the O'Malley family had signed a letter saying they would not do so.
The case is proceeding.
Colin Williscroft
Tue, 26 Jul 2011
Tue, 26 Jul 2011
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Pike River receivers seek relief
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