Provided by NZX
  • NZO0.64

    $ 0.0000%

  • Open 0.64 High 0 Low 0 Bid Price 0.64

    Offer Price 0.63 Value 0 Volume 0

Current as of 28/11/14 10:00AM NZST

Pike River family reparation? No, say NZOG shareholders

Flames leap from the ventilation shaft at the Pike River Mine after the November 2010 explosion. Photo / Mark Mitchell
Flames leap from the ventilation shaft at the Pike River Mine after the November 2010 explosion. Photo / Mark Mitchell

New Zealand Oil and Gas shareholders voted yesterday not to pay reparation of $3.41 million to the Pike River families.

NZOG was the largest secured shareholder in the mine when the disaster occurred.

In July, Judge Jane Farish said the award was being made in spite of the Pike company's parlous financial state, in the hope that the directors or shareholders might contribute.

But at New Zealand Oil and Gas's annual meeting yesterday, the vast majority of shareholders voted against the proposal.

A second motion, put by an individual shareholder, was also lost.

It read: "Shareholders express their dissatisfaction with the way in which the directors managed the company's investment in Pike River Coal Ltd and the company's response after the explosion in November 2010."

During the recent court case, it was revealed there was only $156,000 left from a $2m insurance payment to Pike River Coal Ltd, which is now in receivership.

Judge Farish said it was "morally unjust" the way Pike River had been able to fold soon after the disaster and escape having to pay anything towards the families' welfare.

-Greymouth Star

- APNZ

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on production apcf03 at 28 Nov 2014 10:19:15 Processing Time: 558ms