Wollongong Coal (WCL) will have to pay up to $2.5 million to the Indian-based former owner of its Illawarra mines after losing another court case over money.
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But the struggling miner won’t know how much it will have to pay Gujarat NRE’s subsidiary NRE Resources Pty Ltd until closer to the end of the year.
The judgment in the NSW Supreme Court last week shows WCL has received the unfavourable judgment – and is liable for between $1.2 and $2.5 million – for a case WCL itself had brought against NRE.
“The judgment arises from a proceeding initially commenced by the company against NRE Resources Pty Ltd for amounts owing under an intercompany loan account,” WCL told the stock exchange.
In response NRE had brought a counter-claim seeking payment for security it had paid to the Mauritius Commercial Bank against a loan to Wollongong Coal.
Last month that bank issued a default notice to WCL for not meeting its loan commitments in “a number of events”.
Wollongong Coal is the name Jindal Steel and Power gave to the company Gujarat NRE Coking Coal after taking it over in 2013.
After sinking to 0.4c after the judgment, WCL shares were back to 0.6c on Thursday.