Administrators of the failed Griffin Coal business have been given a $50 million lifeline as it searches for a buyer.
This capital injection between administrators KordaMentha and two creditors comes as more than 70 potential acquirers of the collapsed Collie mines are being presented with operational and financial information about the Griffin group.
The funding will allow KordaMentha to continue operation of Griffin’s businesses, and develop coal exports, while restructuring the company.
It will also allow Griffin to pay royalties owed to the Government, approximately $5 million, for coal mined prior to and after the miner’s collapse.
The financing is expected to keep the mines running and around 480 workers employed.
KordaMentha declined to identify the creditors due to confidentiality clauses in the agreements.