Clearwater Capital sells Oz's Griffin Coal to Lanco

Three players reportedly vied for Griffin Coal, a fiscally burdened company that has publicly struggled to pay off its debt, which reportedly stands near A$1 billion ($990.7 million). In January, Griffin was placed under administration when it was unable to pay A$25 million ($24.8 million) worth of interest to its bondholders, which were reportedly owed more than A$530 million ($525 million). According to reports earlier this year, those debt holders include Harbinger Capital, Clearwater Capital Partners and D.E. Shaw. Under Lanco, Griffin, which is based in western Australia, aims to boost its production capacity to 15 million tons annually from 4 million. It has total reserves of 1.1. billion tons.

"This is a good outcome for all. Lanco has secured a unique long term source of thermal coal that is strategically close to the Indian market, with over one billion tons of resources. Western Australia will gain substantial infrastructure investment in enhanced port access which is key to further foreign investment in the region. The current creditors are getting the right price for this important asset and not a distressed sale outcome as some had speculated," Rob Petty, Managing Partner of Clearwater Capital Partners, said in a statement, adding that the firm worked with Australian administrators and unions to inject capital into the company and set it on the path to recovery. "It has been a difficult process and a testing period over the past year but clearly the right way to have managed this unique situation for the benefit of all."

Valuation details could not be confirmed.

 

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• Topics
• Exits
• Australasia
• South Asia
• Clearwater Capital Partners