WELLINGTON, Oct. 31 (Xinhua) -- Creditors of New Zealand's debt-ridden, state-owned mining firm are to get about half of what they are owed after the sale of the company's assets.
The administrators of Solid Energy New Zealand Ltd. (SENZ) announced Monday that creditors would receive between 45 and 55 NZ cents (32 and 39 U.S. cents) on the dollar.
The result was still better than the return of between 35 and 40 NZ cents (25 and 29 U.S. cents) anticipated under a deed of company arrangement signed in September last year.
The sales of seven mines as going concerns were conditional and were expected to be settled in the first half of next year, said a statement from administrators KordaMentha.
Finance Minister Bill English and State Owned Enterprises Minister Todd McClay welcomed the announcement, saying it was the best outcome for employees, creditors and communities near the mines.
"The sale of the mines as going concerns is a very positive development," English said in a statement.
"It means they will continue to provide jobs and contribute to regional economies. That is not something we could be sure of 18 months ago."
The remaining creditors were primarily banks, said the ministers.
Falling international coal prices and high debts forced Solid Energy into voluntary administration in August 2015.
Shortly afterwards Solid Energy's major creditors effectively took control of the company when arrangements were entered into to facilitate the orderly sale of its assets.
In the two years to administration, the company's directors, management, banks and the government restructured Solid Energy's finances and operations, which included taxpayer support worth more than 250 million NZ dollars (178.75 million U.S. dollars).
