A consortium of European insurance companies has agreed to pay out $NZ80 million ($64.32 million) to the receivers of the Pike River Coal company.

The sum falls short of the capped NZ$100 million ($80.4 million) insurance held by Pike River Coal and covers the damages and interruption of business caused by fatal explosions at the New Zealand mine in November 2010.

Receivers for PricewaterhouseCoopers (PWC) expect to receive the money by the end of the month.

As part of the deal the Bank of New Zealand, which is a first-ranked secured lender, will be fully repaid its $NZ23.2 million ($18.65 million) debt.

New Zealand Oil & Gas (which owns 29.4 % of Pike River) will receive about $NZ38.3 million ($30.79 million) as a secured creditor and a further $NZ3 million ($2.41 million) as an unsecured creditor.

The owners of leased mining equipment that was lost underground in the sealed mine will receive $NZ6.3 million ($5.06 million).

NZ Oil & Gas has agreed to forgo part of its entitlement from the insurance payout to help pay Pike River employees and unsecured creditors, many of whom are local businesses and contractors on New Zealand’s West Coast.

A sum of $NZ10.5 million ($8.44 million) will be available through an early payment plan. If a vote to approve the plan is approved, unsecured creditors can receive a part-payment of the first $10,000, or their full claim if it is less than $NZ10,000 ($8040), and 20 cents in the dollar for any balance above that amount.

In exchange for the early release of money, the unsecured creditors will be asked to give up their right to have Pike River Coal put into liquidation.

PWC receiver John Fisk says he expects the unsecured creditors to be paid their full amount from the sale of the mine.

“A number of interested parties are conducting due diligence before submitting their final bids,” he said.

A royal commission into the mine disaster, which killed 29 men last year, is under way in Auckland.