Appeal against Solid Energy debt restructure fails

HAMISH RUTHERFORD
Last updated 16:16 18/12/2013

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Solid Energy says the High Court has dismissed an appeal against its attempt to restructure its debts.

The Bank of Tokyo-Mitsubishi challenged the decision to convert about a fifth of the state-owned mining company's debts into redeemable preference shares, which have little value.

Solid Energy today confirmed reports that the appeal had been dismissed, and that the company was pleased.

"It gives us more certainty as we work to return the company to profitability," a spokeswoman said.

Finance Minister Bill English had warned that the Japanese bank was playing a dangerous game. If the restructure was not accepted the company would be placed into receivership and lenders would lose everything.

The restructure was approved by the majority of the lenders, meaning it has already taken effect.

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