PwC appointed to find investors for Lanco's OZ coal mine

7 May 2017

Led by ICICI Bank, lenders to Lanco Resources International (LRIPL), the overseas arm the debt-laden Lanco Infratech, which owns the Griffin Coal Mine in Australia, have appointed PwC as the receiver and entrusted it with the task of finding an investor, following loan default.
The loss-making mining company owes Rs 6,250 crore plus accumulated interest and penalties to the lenders. It has not been servicing the loan since December 2016.
The Lanco Group which has been in financial doldrums for quite a few years, is also a defaulter with a consolidated net of over Rs 40,000 crores.
ICICI Bank Singapore is the leader of the lenders' consortium which also has other domestic and overseas lenders, according to a senior Lanco official.
The official, who requested not to be quoted, told PTI here that the lenders will have 18 months to bring in a new investor and hand over the management of the mine which means PwC will have to find a buyer investor within that time frame.
The official also said the accumulated loss of Griffin Coal now stands at over Rs 2,000 crore eroding its net worth.
Receivership is a type of corporate action in which a receiver is appointed by courts or creditors to run the financially stressed company. In most cases, the receiver is given ultimate decision-making powers and has full discretion in deciding how the assets under his control will be managed.
"ICICI Bank Singapore and other lenders have appointed
PricewaterhouseCoopers Advisory Services as the Receivers and Managers of the company...and to find an investor/buyer. PwC as the reciever would also have to ensure that pledged shares are transferred to the new receiver administration for the purpose of security," the official said.
Though the shares are transferred on the lenders s name, Lanco will continue to be beneficial owner, the official added.