Pike River secured creditors agree to standstill

File photo / Kenny Rodger

NZ Oil & Gas, a 29.4 per cent shareholder in Pike River Coal, says secured creditors of Pike River have agreed to a stand-still period of 90 days.

On Tuesday NZOG had said that arrangements were being made for Pike River to draw down the $12 million balance of a $25 million short term funding facility on the understanding that all secured creditors approved the standstill.

NZOG today said its board and staff extended their deepest heartfelt sympathies to the families, friends and colleagues of the 29 men who lost their lives so tragically at Pike River's mine on the West Coast.

"The outcome is devastating. Like all New Zealanders, the board and staff of NZOG were hoping for the best possible outcome.

"Many of us have been down the mine, we have met the mine staff and know how skilled and dedicated they are, and we are personally deeply distressed by the loss of life," NZOG said.

"The welfare of the families and communities who have lost their loved ones is now the prime concern. NZOG will be making a contribution of $500,000 to an appropriate fund to support those families and communities."

NZOG shares were placed in a trading halt on the Australian Securities Exchange (ASX) yesterday evening after confirmation all 29 men in the Pike River mine had perished.

It had resumed trading on Tuesday after a trading halt following the first explosion at the mine on Friday.

The Australian halt was to be lifted, following today's statement, while in early trade in this country NZOG shares were down 1c to 88c.

- NZPA