By Rebecca Howard
Weeks after a series of explosions killed 29 miners in its New Zealand mine, Pike River Coal was placed in receivership Monday, sending No. 1 shareholder New Zealand Oil & Gas down 2.3% to 87 New Zealand cents. “Pike River has debts which are substantial and in excess of its cash and other immediately foreseeable sources of funds,” said New Zealand Oil & Gas, which holds a 29% stake in the miner.
New Zealand Oil & Gas had already lost about 30% of its value after the initial explosion Nov. 19, and analysts said the market has discounted the value of Pike River on its balance sheet. A second explosion and fire at the mine ended relief attempts; efforts continue to put out the fire and recover the bodies.
Pike River Chairman John Dow said in a separate statement that it was in a “precarious position financially” and that ” there is considerable uncertainty about the future of the mine.”
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