Struggling miner Wollongong Coal has won a $91 million judgment in a long-running court case against its former parent company, Arun Jagatramka’s Gujarat NRE Coke.
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But the result is a bittersweet one for the Indian-owned, Wollongong-based coal firm, as it is not hopeful it will see any of the money.
As reported by the Mercury earlier this week, Gujarat NRE Coke, the flagship company of Mr Jagatramka’s fading coal empire, has started a corporate insolvency process under Indian law.
In a statement to investors posted on the Australian Securities Exchange, Wollongong Coal said the NSW Supreme Court case was about money owed by Gujarat NRE for coal which was supplied to it, but not paid for.
“Whilst Wollongong Coal and Wongawilli Coal are taking steps to recover the amount of judgment, they consider that there is little likelihood of recovery because Gujarat NRE Coke Ltd has filed an application with the National Company Law Tribunal for the initiation of corporate insolvency resolution process,” it said.
Mr Jagatramka earlier this week told the Mercury the insolvency proceedings were not a problem and the future remained bright for his company.
Most of the judgment was awarded to Wollongong Coal; about $13 million was awarded to its subsidiary, Wongawilli Coal.
In another piece of good news for Wollongong Coal, the court dismissed a claim made against it by Gujarat NRE Coke over corporate guarantee commission payments.
In other news regarding its various court cases, another claim by Gurajat NRE Coke for $20 million has been adjourned to September.
Meanwhile, Wongawilli coal has settled a case brought by ATF Mining Electrics Pty Ltd, trading as AMP Control. Damages of $742,000 were alleged but Wollongong Coal will now pay $200,000 over ten monthly instalments, in addition to a lump sum of $75,000 already paid.