Solid Energy New Zealand Limited (Administrators Appointed) (SENZ) has been advised by Genesis Energy Limited that it is terminating its coal supply agreement.
Voluntary Administrator, Brendon Gibson says that Solid Energy had been in discussions with Genesis for some time and was aware that it was considering its position.
“The Board had been working tirelessly to secure the contract with Genesis. It’s fair to say we are all disappointed that the company has chosen to exercise its rights at such a strategically important time.
“As Administrators, we have been working with the Board and Management of Solid Energy to ensure the best possible outcome for all creditors via the voluntary administration process. The Board had hoped that all customers would support these efforts.
“Clearly, Genesis’ decision will have an impact on Solid Energy’s North Island business and the morale of employees. We are continuing to work with the Board to further its proposal prior to the watershed meeting,” Mr Gibson said.
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Released by: Brendon Gibson, Administrator, KordaMentha