PPB Advisory - the administrators of the failed Linc Energy – says the company should be placed into liquidation.

PPB’s latest report to creditors outlines over $298 million in debts the company has yet to repay.

The cash deficit was caused in part by reputational damage from charges brought by the Queensland Government.

Linc Energy stood trial over an alleged gas breach at its Chinchilla trial site in March.

Just weeks after Queensland's environment department accused Linc of wilfully causing serious harm at CSG a site on the Darling Downs, the company went into administration.

The administrators have since found that Linc was solvent before they were called in, and there did not seem to be any trouble with potential offences or liquidation recoveries.

PPB Advisory’s report showed a steep deterioration of global commodity prices wrought havoc on Linc Energy's finances.

Linc had proposed a big restructure and recapitalisation scheme, but the unwillingness of major shareholders to participate put major pressures on the company.

PPB Advisory is continuing its investigation, and has put off the next creditors meeting until it has more to say.

Source: ABC