Administrators target quick sale for remaining Griffin assets

WITH the $A800 million-plus Griffin Coal sale completed before Christmas, administrators reportedly aim to sell Griffin Energy assets next month, including the $1.2 billion Bluewaters power station in Collie.
Administrators target quick sale for remaining Griffin assets Administrators target quick sale for remaining Griffin assets Administrators target quick sale for remaining Griffin assets Administrators target quick sale for remaining Griffin assets Administrators target quick sale for remaining Griffin assets

A Komatsu 830E trucks being loaded by Griffin Coal's PC5500 shovels.

Blair Price

The Australian reported that bidders from Australia, Asia and North America were on the shortlist to buy the 400 megawatt power station.

The Emu Downs 80MW wind farm joint venture between Griffin and Queensland’s Stanwell Corporation might attract interest from Japan’s Eurus Energy and renewable power company Infigen Energy, according to that report.

Administrators KordaMentha recently made presentations to 9.5%-interest senior interest note holders (due 2016) in New York and Hong Kong.

The Griffin Group was formerly run by coal tycoon Ric Stowe and the business had more than $1 billion of debt associated with the Bluewaters power station when it entered voluntary administration in early 2010.

But two of Stowe’s companies received more than $2 million in management fees in the second half of 2010, Fairfax newspaper The Age reported.

Indian electricity generator Lanco Infratech bought Griffin Coal before Christmas and plans to expand the operations.

The thermal coal producer employs close to 470 workers and operates the Ewington and Muja mines 220 kilometres southeast of Perth.

Back in September, Construction Forestry Mining and Energy Union WA’s mining and energy secretary Gary Wood revealed the company was producing about 1 million tonnes per annum of export coal and about 2.7Mtpa for the domestic market.

Wood was part of the committee of creditors, and indicated that Griffin could possibly ramp up saleable production to 4-7Mtpa, depending on the level of investment.

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