Linc Energy will wind down its operations after creditors voted for liquidation this week.

The company faces legal action over five alleged environmental breaches at its Chinchilla underground coal gasification site near Brisbane.

Linc’s 155 creditors, including many of its former workers, are owed a total of $320 million.

Reports say there are active negotiations underway with businesses interested in buying Linc's assets.

Bids for the assets are expected by June 10.