AFTER months of speculation, the future of the Redbank Power Station has now been resolved with receivers KordaMentha informing the plant’s 39 employees today it “will close immediately”.
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The controversial 151-watt coal-fired power station, just south of Singleton, is fuelled by beneficiated dewatered tailings, or waste coal, from Coal & Allied’s Mount Thorley Warkworth mine and was placed into receivership in October 2013 after the Redbank Project withheld a $3 million dollar repayment due on loans.
Back in June, the Australian Financial Review (AFR) predicted the plant was going to be sold.
Unfortunately, this has not turned out to be the case and employees were informed of the station’s fate during a meeting at about 10am on Friday.
Electrical Trades Union representative Adam Wardrobe said they were not present at the meeting to represent their members.
“KordaMentha only contacted us 60 minutes before they met with our members at the power station, which means we did not have to opportunity to attend,” he told The Argus.
“This is poor form as it was a critical meeting that we should have been at.
“At this stage, all we know is that the gates are shut and only a small crew will be needed for the interim.
“We are seeking to meet with the receivers to get to the bottom of the situation and have grave concerns about future re-employment options for our members considering the economic climate in the valley.”
KordaMentha’s Restructuring Partners Martin Madden and Janna Robertson say the majority of the company’s 39 employees would finish on Friday with full entitlements.
“The Security Trustee acting for the secured lenders, assigned Redbank’s two main contracts – for purchasing coal and electricity hedge agreement – back to the counter parties to the contracts for consideration. From yesterday (Thursday), the power station had no ongoing fuel supply or electricity pricing hedge agreement.
“The remaining assets, including the turbine, generator and plant and equipment would be prepared for sale. A limited number of employees would remain at Redbank to help with decommissioning and other tasks.”
KordaMentha will continue payment of receivership related trade creditors and suppliers in the ordinary course, according to the partners.
