Retrenchment 2011 to 2015
In March 2012, Solid Energy purchased Pike River Coal, which had gone into receivership after the Pike River Mine disaster of 2010.[14] The sale was completed in May.[15] There has been criticism because Solid Energy decided in 2014 that it was too risky to re-enter the mine to recover any remains from the mine.[16][17] The government subsequently purchased the 3580 ha of land around the Pike River Mine. The environment minister Nick Smith announced on 15 November 2015 that the 3580 ha of land is to be added to the Paparoa National Park, and a 45 km walkway, the Pike 29 Memorial Track from Blackball to Punakaikai through the park constructed as a memorial to the 29 miners lost in the disaster.[18]
In mid-August 2012, the chief executive, Don Elder, announced a decline in Solid Energy's revenue of $200 million and a review of its operations.[19] On 25 October 2012, Solid Energy confirmed it was moth-balling the Spring Creek Mine and that 220 miners would be made redundant.[20] Solid Energy's annual report for the financial year ended June 2012 was released in November and showed a loss of $40 million, a decline of 146% from the profit for 2011.[21]
In December 2012, workers at mines owned by Solid Energy were repeatedly rejecting pay cuts and reductions in hours.[22] Solid made 235 employees redundant at the Spring Creek mine, and reduced the workforce at the Christchurch head office by 163 positions,[23] as well as cutting 60 jobs at the Huntly East mine.[24] In January 2013, workers at the Stockton Mine agreed to reduced hours and pay after months of negotiations with owners Solid Energy, who had dis-established several hundred jobs in the previous year.[25]
On 4 February 2013, board Chairman Mark Ford announced that Don Elder had resigned as Chief Executive and that Garry Diack would be the interim CEO until a permanent CEO was appointed.[26] On 22 February 2013, Solid Energy stated that its half-year result would include a further "significant loss" and that its debt had increased to $389 million.[27] Finance Minister Bill English distanced the Government from the state-owned company's woes, saying it would no longer be paying out large bonuses to executives.[28]
In 2011, Solid Energy had valued itself at $3.5 billion, but a later review said that was at least $2 billion too high.[29][30] A restructuring package in October 2013 gave the company an extra $100 million in equity, with 75% coming from banks and 25% from the New Zealand Government. Another $103 million of equity was supplied by the government in September 2014.[31]
Voluntary administration and sale of assets
On 13 August 2015 the company went into temporary voluntary administration, asking creditors to freeze most of its debt. If the creditors agree, Solid Energy will sell its assets as going concerns so that it can pay the creditors.[31][32][33]
On 31 October 2016 the company announced it had concluded sale and purchase agreements for the majority of its mining assets.[4] Agreements were signed with three different entities:
The sales were completed in the first half of 2017.[4]
