Griffin Coal Mining Co., a unit of India’s Lanco Infratech Ltd. (LANCI), said it terminated a coal supply agreement with Perdaman Chemicals & Fertilizers Ltd. and offered to restore the accord if certain terms are met.
Griffin Coal can give Perth-based Perdaman until Oct. 15 to achieve “financial close,” Lanco said in a statement today, without elaborating or providing details of the terms. The offer for additional time must be accepted by Sept. 6, it said.
Lanco, a power producer controlled by billionaire L. Madhusudhan Rao, acquired Griffin in February to secure coal supplies for 15,000 megawatts of plants planned in the country by March 2015. Perth-based Perdaman has a 25-year supply agreement with Griffin and has sued the coal-miner for breach of contract.
Calls to Perdaman’s office in Perth after hours were unanswered. Suresh Kumar, Lanco’s chief financial officer, didn’t answer two calls made to his mobile phone.
Lanco surged 5.9 percent to 17.05 rupees, the most since Aug. 3, at the 3:30 p.m. close in Mumbai. The stock has declined 73 percent this year.
Lanco won dismissal of an attempted injunction by Perdaman to block the use of coal assets as collateral for an $800 million loan. Perdaman said Griffin’s assets wouldn’t be available to fulfill any judgment in the breach-of-contract.
The case was rejected because it would “prevent or substantially inhibit Griffin from raising additional funds necessary to develop and expand its mine,” Supreme Court of Western Australia Justice Andrew Beech wrote in the Aug. 11 decision.
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