The collapse of state-owned coal producer Solid Energy has
been well documented in recent months.
Labour leader David Shearer is calling for fuller disclosure
on Solid Energy's spending and management.
Any Government bail-out of financially stricken Solid Energy
could cost far more than the $389 million of debt identified
by Minister for State Owned Enterprises Tony Ryall.
Solid Energy's financial woes became public in August last
year, when it flagged the likelihood of a $200 million slump
Solid Energy's controversial plans to utilise billions of
tonnes of Southland lignite appear to be at an end as the
company fights for its financial survival.
Solid Energy is at a crisis point and a Government bail-out
is almost inevitable, mine closures are possible and further
job cuts likely in another restructuring to try to salvage
the debt-ridden coal mining company.
In a shock announcement yesterday, the longtime chief
executive of beleaguered state-owned enterprise Solid Energy,
Don Elder, tendered his resignation, effective immediately.
Don Elder has resigned as chief executive of Solid Energy,
effective immediately, the state-owned coal company said in a
State-owned enterprise Solid Energy has finished a
forgettable financial year, with its after-tax profit
plunging 146% to a loss of $40 million and no repeat of last
year's $30 million dividend.
About 105 Solid Energy staff will stay home today to wait
anxiously for letters advising them whether they will lose
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