Update on the Department of Labour prosecution of Pike River

[31 July 2012]

PwC Partners John Fisk, David Bridgman and Malcolm Hollis, Receivers of Pike River Coal Limited (In Receivership) (PRCL) have advised the District Court in Greymouth that no plea will be entered on behalf of PRCL in response to the charges brought against it by the Department of Labour. PRCL will take no further steps in relation to those charges.

Following the completion of the sale of the mine and related assets to Solid Energy, PRCL is in effect a bare shell. Even after the sale, the company owes substantial amounts of money to both its secured and unsecured creditors.

Mr Fisk says “We, the Receivers have no direct knowledge of the matters which are the subject of the Department of Labour’s prosecution. Given the amounts still owing to creditors, the Receivers do not consider it is in the economic interests of creditors to spend the limited funds available to the company forming a view on the merits of the prosecution or any defences to it. This is simply a pragmatic decision given the circumstances.”