Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

EXCLUSIVE: Alternative bidder emerges for Solid Energy

EXCLUSIVE: Alternative bidder emerges for Solid Energy

By Pattrick Smellie

Sept. 17 (BusinessDesk) - A New South Wales-based mining investor, Mach Energy, is expected to make an alternative bid for distressed state-owned coal miner Solid Energy at today's 'watershed' meeting of creditors in Christchurch this morning.

BusinessDesk reliably understands Mach will seek a 30 day delay to the vote scheduled at today's meeting of Solid Energy creditors, allowing time to undertake due diligence and make an alternative offer to the one put together by the voluntary administrators, Korda Mentha, and the Solid Energy board.

It is understood the Mach bid would offer employees and trade creditors the same certainty of full payment as the Korda Mentha plan and would seek to buy out bank and non-trade creditors immediately, rather than offering a payment at the end of Korda Mentha's proposed 2 1/2-year asset realisation programme.

Little is known about Mach, which was registered with the Australian Securities and Investment Commission in October last year. Its website is under construction and publicly available ASIC records give no clue to its ownership, although its backers are understood to be Asian investors looking for opportunities in the coal sector created by the global slump in coal prices that have forced Solid Energy into administration for break-up.

Korda Mentha's proposed Deed of Company Arrangement was unveiled on Sept. 10. At that time it had the support of a wide range of banks, local authorities and creditors including KiwiRail and Fonterra, based on its potential to return between 35 cents and 40 cents in the dollar following an orderly asset realisation process, for which the banks would extend a two and a half year moratorium on debt repayments.

The Mach proposal's capacity to match or better that deal is not known and would depend on the outcome of due diligence. However, by offering cash up-front, it might be expected to be offered at a discount to the Korda Mentha proposal, which warned that immediate liquidation of the insolvent coal miner would likely yield just 15 cents to 20 cents in the dollar.

The watershed meeting is scheduled to start at 11.30am.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>


Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Statistics: Consents Remain At Record Levels
There were 47,715 new homes consented in the year ended October 2021, up 26 percent compared with the year ended October 2020, Stats NZ said today. "The year ended October 2021 marks another record for the annual number of new homes consented,” construction statistics manager Michael Heslop said... More>>



Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>


PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>