Receivers have been appointed to take control of Lanco Resources International, the Singapore parent company of loss-making WA miner Griffin Coal.
PwC took charge of Lanco last week at the direction of a secured creditor, believed to be Indian bank ICICI.
Lanco Resources’s own parent company, Indian conglomerate Lanco Infratech has itself struggled with high debts, and was forced to go through a major corporate restructuring two years ago. The group bought the Griffin coal mine, which was previously a part of Ric Stowe’s business empire, when Griffin defaulted on its debts in 2010.
Since then Griffin has failed to convince as a going concern. The mine is currently carrying $1.2 billion in liabilities, along with accumulated losses of nearly $373 million.
Lanco’s purchase is now being intensively litigated, with Lanco suing the administrator claiming it was misled into paying too much.