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Pike River Coal Mine Calls in Receivers

The gas explosion which killed 29 miners at the Pike River Coal mine in New Zealand has contributed to major debts that the company may not be able to pay. Mining operations have not been undertaken since November 19, the day of the blast.

This makes it difficult for the company to meet its dues and it is likely to face insolvency with receivership being the next and regrettable unavoidable step. New Zealand Oil and Gas Ltd or NZO is the major shareholder of Pike Rive Coal. NZO has appointed John Fisk, Malcolm Hollis and David Bridgman of PricewaterhouseCoopers as receivers for Pike River.

John Dow the chairman of Pike River Coal said that the company finds itself in a precarious position financially as a result of the events of the last three weeks. He also said that the only prudent action they could take was to approach their major creditors and advise them that they were unlikely to be able to repay their loans at the end of the standstill period.

Grey District mayor Tony Kokshoorn is hoping to get government assistance to help the mineral industry as it deals with the mining tragedy in the West Coast created by the Pike River Coal mine explosion.

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