Indian company buys Griffin Coal

Indian infrastructure group Lanco Infratech has acquired the assets of the failed Griffin Group.

Indian infrastructure group Lanco Infratech has acquired the assets of the failed Griffin Group.

KordaMentha administrator Brian McMaster announced today that “Lanco’s ownership is expected to bring substantial investment as a result of the expansion of the mine operations and associated infrastructure.”

Griffin entered receivership at the beginning of the year, collapsing under nearly $1 billion of debt.

This debt included $428 million owed to U.S. bondholders and more than $35 million in tax.

On top of this, the company made a $20 million loss in the year to 30 June, which it blamed on increasing production costs.

The Indian firm Lanco was chosen after a rigorous bidding process.

It said the acquisition of Griffin is part of Lanco’s commitment to the Australian market.

However, the sale does not include Griffin’s Bluewaters and Bluewater II power plants.

Griffin produced more than four million tonnes of coal during the 2009-2010 financial year.