New Delhi: Lanco Infratech has said the long drawn AUD 3.5 billion (about Rs 16,600 crore) legal battle with Australia's Perdaman Industries over coal supplies is expected to be resolved by March next year.
Stating that the company does not foresee any risk from the case, Lanco's Chief Operating Officer (Finance) T Adibabu said there was no need for an out of court settlement.
Multinational Perdaman, last year, filed an AUD 3.5 billion lawsuit against Lanco in Australia, alleging non compliance with coal supply pact for the company's upcoming urea plant in Western Australia.
"It will take time, about six to eight months. Resolution is expected by March. We do not foresee any risk from the legal battle," Adibabu told reporters.
He was responding to a query on the status of the Perdaman lawsuit.
For its upcoming Collie urea plant, Perdaman had entered into a 25-year coal supply pact with Australia's Griffin Coal, which was acquired by Lanco for AUD 730 million in March 2011. The pact was finalised in December 2010, with the then owners of Griffin.
"As of now, there is nothing wrong with us. There is no need for out of court settlement," Adibabu said.
In the three months ended June 2012, Lanco posted a consolidated net loss of Rs 441.5 crore on account of various factors including underperformance oof Griffin coal assets.
Production at Griffin mines was impacted by rainfall as well as lower export prices.
Adibabu noted that all approvals related to Griffin assets, including at port level, are expected by April 2012.
Lanco is looking to increase production from Griffin mines to around 20 million tonnes per annum.
Meanwhile, the diversified group has appointed Macquaire Capital as an adviser to help it in raising up to USD 750 million from strategic investors. The entity's debt burden stood at nearly Rs 32,000 crore at end of 2012 June quarter.
Lanco has presence in six segments including power and infrastructure.
First Published: Sunday, August 19, 2012, 13:26