Administrators have been called in at Caledon Coal after a large water inflow in a new longwall production panel halted production at its Cook Colliery near Blackwater.
The Cook Colliery – Caledon’s single operating asset and sole source of income – has not operated since March 7 and stood down about 70 employees from March 18.
The group employs about 250 full time employees, according to a statement released on Friday.
Grant Sparks, Stephen Longley and Martin Ford of PPB Advisory have been appointed administrators of Caledon Coal and four related companies – CC Pty Ltd, Blackwater Coal Pty Ltd, Bowen Basin Pastoral Company Pty Ltd and Guangdong Rising (Australia) Pty Ltd.
PPB Advisory is undertaking an urgent review of Caledon and said it would work with stakeholders to assess the current position of the company and opportunities to restructure the business for the future.
Caledon’s operations will be placed into care and maintenance during the administration period.
The first meeting of creditors is due to take place on May 24.
Further information is available to creditors and employees of Caledon under the Creditors Information section of the PPB Advisory website at www.ppbadvisory.com