Update: Department of Labour prosecution of Pike River Coal

18 April 2013
News Release

Update on Department of Labour prosecution of Pike River Coal Limited (In Receivership)


PwC Partners John Fisk, David Bridgman and Malcolm Hollis, Receivers of Pike River Coal Limited (in Receivership) (PRCL) note the District Court’s judgment today in the prosecution of PRCL.

Judge Farish has found PRCL guilty of all nine charges under the Health and Safety in Employment Act.

The Receivers advised the Court in July last year they would not be taking any steps in relation to the charges brought against PRCL by the Department of Labour.

Mr Fisk says, “The Receivers had no direct knowledge of the matters which were the subject of the Department of Labour’s prosecution as they all occurred prior to the Receivers’ appointment.

“Given the amounts owing to creditors, the Receivers did not consider it in the economic interest of creditors to spend the limited funds available to the company on any defences to the charges. This was a pragmatic decision in the circumstances.

“The Receivers therefore did not participate in the formal proof hearing against PRCL in March this year, and have no comment to make on the judgment against PRCL.”

The Receivers understand a sentencing hearing has been set for 4 and 5 July 2013. The Receivers will be providing information to the Court and prosecution in relation to the company’s financial position and current status in order to assist the Court in sentencing.

“The Receivers do not intend to take any position in relation to what may be an appropriate sentence. This is a matter for the Court,” adds Mr Fisk.

--

A dedicated page on the PwC website can be found at www.pwc.co.nz/pike-river-coal/

ENDS

© Scoop Media