Larry Williams: Solid Energy outcome inevitable

Solid Energy staff learned their fate today. Photo / NZPA

Opinion

Solid Energy

Solid Energy is going into voluntary administration. The company will now consult with its 1500 creditors, but hopes to come out of voluntary administration within five weeks, in order to start selling down its assets over the next two and a half years.

This was inevitable. The company is up to their eyeballs in debt, and the coal price has plummeted. If there is a buyer for the assets, and that's a big if, then Solid Energy will go for a bargain basement price.

Solid Energy got into this mess because they diversified into other investments like bio-fuels that turned to custard. The blame game has started. Fact is, had Solid Energy been a private company listed on the stock market, I doubt very much that the Solid Energy board would have got away with what they did.

Auckland house prices

Finance Minister Bill English is warning of the possibility of Auckland house prices dropping. He talked of a possible reversal of fortune, in line with house drops in other major cities internationally. English said there's one thing a lot worse than demand, and that's no demand. The interesting thing out of this house debate will be - when and if prices drop - the reaction if suddenly peoples paper wealth is say 20% less. It's always the danger in an over-heated market.

All Blacks

There is much anticipation in the test at the weekend between the All Blacks and the Wallabies. You'd have to say it was a surprise selection in Victor Vito. It's clear the All Blacks are under the pump. Should I say some of the older players are under pressure? That's all good. If they're not up to another World Cup campaign, better to find out now.

Our Men in Black

Have a look at the latest Air NZ safety video - Men in Black Safety Defenders. Inspired by the film franchise Men in Black, it features Richie McCaw and Dan Carter as Men in Black agents. Israel Dagg and a bunch of others feature. It's superb, so much fun. As a production, it's superb. Worth a look.

Sex offender's register

The Government is establishing a sex offender's register. Social Development Minister Anne Tolley has announced legislation enabling a register is going before Parliament. It'll mean offenders convicted of a qualifying offence will have their details recorded on a register with its details available to Police and Corrections Department staff. The register won't be publicly available.