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  1. #10441
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    There is no statutory requirement any more in NZ (and Canada) for dividends to be paid out of retained earnings. Solvency test and capital requirement are the pertinent factors to consider.

    NZO should have no problem paying out dividends.

  2. #10442
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    WINNERS LINE
    =========

    $400.mil. PUMPED IN SINCE 2002 FOR $ 60mIL. RETURN SAYS IT ALL.
    AND THEY ARE STILL WILLING TO PUMP IN MORE, CAN YOU BLAME THE MANAGEMENT FOR MAKING A MEAL OF IT?

  3. #10443
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    Quote Originally Posted by Balance View Post
    If the government allows open-cast, watch for a bidding war on access to potentially US$10 billion worth of coal.
    Hey wouldnt $10 billion USD just about pay for the ChCh rebuild, without having to sell the family silver.

    The subject of state asset sales is going to be a big election year issue. If the Govt could somehow get a windfall from allowing Pike to be open cast it would solve a few problems.

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    The government would only get a fraction of 10 billion worth of coal in the ground thinking otherwise is naive. Seems that pike holders really are clutching at straws with the entire open-cast mining issue the government isnt going to force the issue in an election year it would be political suicide
    Time is a great teacher, but unfortunately it kills all its pupils

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    Quote Originally Posted by boysy View Post
    The government would only get a fraction of 10 billion worth of coal in the ground thinking otherwise is naive. Seems that pike holders really are clutching at straws with the entire open-cast mining issue the government isnt going to force the issue in an election year it would be political suicide
    Would it really be political suicide and what if the govt owns a good percentage of the the mine? Why let some foreign company gain all the profits. The country is now very fragile financially - the EQC is depleted and the country needs to export quickly not wait for the insurers to pay up.

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    This government is selling off the silverware they have expressed they would rather pay off debt than hold stakes in soes I don't see this as being any different now. The government doesn't have spare cash lying idle to throw at a open cast coal mine simple as that
    Time is a great teacher, but unfortunately it kills all its pupils

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    Quote Originally Posted by boysy View Post
    This government is selling off the silverware they have expressed they would rather pay off debt than hold stakes in soes I don't see this as being any different now. The government doesn't have spare cash lying idle to throw at a open cast coal mine simple as that
    The Govt doesnt need to be directly involved. They could just put on a 'ChCh earthquake levy' per tonne of coal extracted in return for letting it be open cast.

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    Bit confused as to why NZO would have to join a bidding war for something it already owns 30% of? NZO appointed the receiver & surely they will want the current ownership retained until the enquiries are complete in about a years time.

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    The Receiver of Pike has a primary duty to NZO but must have regard to other creditors in statutory pecking order. So the Receiver will consider any deal that provides the best possible outcome firstly for NZO, any other considerations line up behind. Insovency law101.

  10. #10450
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    Quote Originally Posted by kiwitrev View Post
    The Receiver of Pike has a primary duty to NZO but must have regard to other creditors in statutory pecking order. So the Receiver will consider any deal that provides the best possible outcome firstly for NZO, any other considerations line up behind. Insovency law101.
    Yes but surely the receiver will know that until the enquiry is over that the mines worth is negligible if it cannot operate. IF & not sure what chance there is that the mine is recommended to be open cast then it becomes a saleable asset, In that case the bidders would have to buy off the reciever with proceeds returned to the creditors then shareholders. The point is that if a bidding war takes place then the current shareholders would recieve something. Not holding a lot of faith in that happening but with National in power the chance exists

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