After the brawls and controversies of the last few weeks, the new board has its work cut out for it in regaining the confidence of investors.

Sydney chartered accountant Stephen Kwik, former boss of biotechnology company Peptech, has been appointed as executive director and company secretary. Sydney lawyer Richard Gelski is a non-executive director. Melbourne businessmen Tony Sennitt and Michael Norster have also been appointed to the board; Sennitt as a non-executive directors and Norster as chairman.

The new board has now has now dropped a New South Wales Supreme Court action launched by the former board against shareholders alleged to have acted in concert.

Kwik told the Sydney Morning Herald that the court action had been dropped because all the major shareholders had responded satisfactorily and their actions had been “above board” as far as the new board was concerned.

Last Tuesday, chairman Michael Knight, managing director Andrew Purcell and independent director Bruce McKay left voluntarily. The chief financial officer and secretary, Chris Brown, resigned the following day.

Sydney Gas has told the ASX that it remained a going concern and could pay its debts.

The company also said it was reviewing "a number of refinancing options" in order for it to find $30 million needed to repay Australian Gas Light for underwriting a convertible notes issue.

The previous board concluded a joint venture arrangement under which AGL will become operator of Sydney Gas’ Camden coalbed methane production venture.

If Sydney gas cannot find $30 million to repay AGL for underwriting the convertible notes by December 31, AGL could take control of 'some or all' of the remaining interest in its Camden project.