PwC: Pike River Coal Limited (In Receivership)

Friday 14 January 2011

Pike River Coal Limited (In Receivership)

Yesterday, Commissioner of Police Howard Broad announced the Police’s decision to cease efforts to re-enter the mine and the attempted recovery operation due to continuing difficulties with initiatives to stabilise the mine. The Police have committed to secure the mine in the interests of public safety.

Once the mine is secured and safe, the Police intend to hand back direct responsibility of the mine to the Receivers, John Fisk, David Bridgman and Malcolm Hollis, partners from PricewaterhouseCoopers. The Receivers have been responsible for the management of Pike River Coal Limited since their appointments on 13 December 2010.

Pending this handover, the Receivers will continue to give the Police full cooperation and assistance using the resources at their disposal.

John Fisk says “as Receivers, our principal role is to achieve the financial returns for the Company’s secured lenders. However, in the case of Pike River Coal Limited, we are very aware of the extenuating circumstances surrounding not only the Company but also the families and the West Coast community, and the implications of the Company’s Receivership on all parties.

“We wish to see the mine atmosphere stabilised and inert with risk of underground fires or further explosions eliminated. The current Police-led operation has not yet been able to achieve this, therefore we need to consider alternative options. One option is to temporarily seal the mine whilst other longer-term options are properly evaluated,” adds Mr Fisk.

The Receivers are still considering the option of eventually re-opening the mine so that it can again be a major employer and contribute substantially to the West Coast economy.

As stated by the Commissioner of Police, safety considerations will remain paramount, and these will dictate next steps for us as Receivers.

In the interim, the Receivers will fulfil their responsibilities to provide information and assist the various inquiries that are underway.

ENDS

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