Solid Energy Creditors Vote for DOCA at Watershed Meeting
Please read this statement from the Administrators of Solid Energy New Zealand Limited.
17 September 2015
SOLID ENERGY CREDITORS VOTE FOR DOCA AT WATERSHED MEETING
Creditors of the Solid Energy Group have today approved a Deed of Company Arrangement (DOCA) with the Group.
Today’s Watershed Meeting was the final step in a Voluntary Administration process which began on 13 August 2015.
Administrator Brendon Gibson said the result cleared the path for the Group to move on with the process of realising its assets, under the full control of its Board of Directors.
“The DOCA process enables a progressive sell-down of Solid Energy’s assets over the next two and a half years and provides for day-to-day trade creditors and employees to be paid in full,” he said. “Debt owed to other creditors, including the Bank group and Bondholders, will be restructured into a two-and-a-half year facility.”
Mr Gibson said control of Solid Energy will return to the Board imminently; as soon as minor procedural conditions are fulfilled. “Payments to trade creditors will be disbursed within five-to-seven working days and the payroll for staff continues uninterrupted.”
Solid Energy Acting Chairman, Andy Coupe, said he was very pleased that the DOCA had been adopted. “We are grateful for the support we have received in negotiating our proposal. We acknowledge the Group still faces challenges but we are pleased the path is now clear to move on with the process and get payments to creditors under way”.
Mr Gibson said that following the Administrators’ report to creditors being issued, the Administrators received a request from an offshore third party to adjourn the Watershed Meeting for 90 days so that party (which is not a creditor of Solid Energy Group) can ascertain whether they wish to acquire the assets of the Solid Energy Group. The request was made within a non-binding outline proposal for an alternative means of realisation of the assets of the Solid Energy Group.
Mr Gibson said, “It is not unusual to receive such an approach in an administration, but it is unusual after the formal administrators’ report has been issued. This approach has not changed the process. The Watershed Meeting has proceeded as planned. The meeting was advised of the approach made to us and this matter was dealt with within the meeting”.