News that Pike River Coal Ltd's unsecured creditors will get some of the $5 million they are collectively owed was greeted with relief in Greymouth today.
Nearly 70 West Coast businesses that were contracting or supplying goods to the mine when it exploded on November 19 last year were caught with unpaid bills when the company was subsequently put into receivership.
Contractors' group spokesman Peter Haddock said local businesses were still owed a lot of money, but the receiver's offer yesterday of part-payment was "a good outcome''.
PricewaterhouseCoopers announced yesterday a proposal to give a voluntary early payment to all unsecured creditors. Full payouts will be given to 243 unsecured creditors owed up to $10,000.
The 220 creditors owed more than $10,000 will receive $10,000 and up to 20c in the dollar for any balance above that amount, up to a capped aggregate of $10.5 million.
The payout was secured after the receivers received an $80m insurance payout. New Zealand Oil and Gas, a 29.4 per cent owner of Pike River Coal, agreed that some of that money should be used to pay unsecured creditors.
Mr Haddock said the future would be even brighter if the sale of the mine went through, as that could see everyone paid out in full.
"It is something that is needed in the community _ it is really good news, and with the possibility of a sale there is more to come.''
Other small business creditors also welcomed the payment.
Greenfield Motors owner Kerry Heveldt said it was "bloody good news''.
"It will be great for a lot of the smaller businesses, but it was also money that we had all earned.''
Tasman Tyres branch manager Guy Nicol said: "Anything is a bonus and the outstanding amount added on would be great.''
Westland Hydraulics owner Ross Dey said it was a good result for the Greymouth community.
"There are certainly not many times when businesses become unsecured creditors, that they get any of the money they are owed _ it's terrific news.''
Grey District Mayor Tony Kokshoorn said it was a "fine gesture'' from both NZOG and the receivers.
"Now everyone needs to sit down an concentrate on a body recovery plan.''
- Greymouth Star
