Solid Energy to announce fate

  • 12/08/2015
(File)
(File)

The fate of struggling mining company Solid Energy will be announced tomorrow, the company says.

A spokesman for the state-owned coal miner said it would be holding meetings with staff across the country in the morning and make an announcement to the media shortly after in Christchurch.

The company has been crippled by debts of about $320 million and has struggled to survive for more than a year.

It has also been hit hard by falling commodity prices.

The Government, the company and the banks it owes money to have been looking for a way out amid speculation it could be put into liquidation.

Earlier in the month, Solid told staff there were three options for it going forward: an arrangement that would allow it to continue operating, some kind of controlled sell-down, or liquidation.

Finance Minister Bill English won't reveal anything about Thursday's announcement.

"Solid Energy has been through a long, intense process of negotiation involving the banks, the company and other creditors", he told reporters.

Mr English says progress has been made but the issues are complicated.

Prime Minister John Key said he wasn't in a position to talk about Solid Energy.

In April the government ruled out putting more money into Solid Energy.

The company employs about 400 people.

NZN