A foreign owned resources operation became insolvent after owing parties more than $1 billion.
Deloitte was recently appointed as receivers for Lanco Infratech’s Griffin Coal Mine in Shotts, 195km south of Perth.
Financial advisory partner Matt Donnelly confirmed initial attempts to revive the company have failed. The insolvency expert will next try a more formal process.
“Disappointingly an informal restructuring was not possible,” he said according to News Limited.
“We will be working to ensure there is no disruption to coal supply to Griffin’s customers.”
The operation employs nearly 270 direct, labour hire and contract workers. No redundancies were expected at the time of publication.
“The workforce is integral to operations and, through this appointment, we extend certainty of continued employment for Griffin’s workers – and no personnel changes are envisaged,” Donnelly said according to the media outlet.
The remarks came after the mine failed to repay a nine-figure sum. Financial uncertainty prompted Bluewaters Power Station, which is owned by Japan-based Sumitomo and Kansai, to try to seize control of the operation.
India’s ICICI Bank, which acquired Griffin Coal for $730 million during 2017, promised to keep working with mine management to revive the struggling business.
The operation has faced various wet weather, machine breakdown, overburden and profitability challenges.
Griffin Coal’s owner is the Indian conglomerate Lanco Infratech.
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