Simpson Grierson acts on Solid Energy mines sale

The firm which went into voluntary administration was hit hard by a slump in the coal market and was unable to pay nearly $400 million in debt.

Simpson Grierson advised state-owned enterprise Solid Energy New Zealand Limited (Solid Energy) on the sale of its mines to three parties.
 
Simpson Grierson's team was led by partner Kevin Jaffe and included Victoria Anderson,  Josh Cairns, Michael Wood, Peter Eady, James Craig and Tara Wylie.
 
Phoenix Coal Limited (a joint venture company between Talley's Group and Bathurst Resources Limited) has purchased the Stockton mine on the West Coast, as well as the Rotowaro and Maramarua mines in the Waikato region.
 
Meanwhile, Greenbriar has bought the New Vale and Ohai coal mines in Southland, and Birchfield Coal Mines has purchased the Strongman and Liverpool mines on the West Coast.
 
The resources firm went into voluntary administration last year after being hit hard by a slump in the global coal market.
 
Solid Energy closed mines, eliminated hundreds of jobs and was unable to pay back nearly $400 million in debt.
 
“The range of bids received were generally of a high calibre and are a pleasing response to our efforts to drive improved operating performance across the business. In this regard I wish to acknowledge the outstanding performance of the senior management team,” Solid Energy Chairman Andy Coupe says.
 
“The successful bidders were those who offered the highest aggregate value realisation for the group of assets assessed as a whole, underpinned by a high degree of confidence in their capability to complete the transactions.
 
“Directors and management have worked hard to achieve this outcome and ensure continued prosperity in the local communities and regional economies in which we operate. The Board would like to acknowledge the efforts of all staff during an extended period of uncertainty. We also wish to acknowledge the considerable support and efforts of local government, creditors and Treasury in helping to achieve this result.”
 

Related stories:
Simpson Grierson acts for ACC on Kiwibank acquisition
Gilbert + Tobin acts on landmark Trans-Tasman energy demerger
 

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