Arun Jagatramka’s company Gujarat NRE Coke, once the parent of what is now Wollongong Coal, faces a New Year’s Day reckoning which could end with the firm being liquidated.
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Gujarat NRE, which once ran mines in Russell Vale and Wongawilli and sponsored the Illawarra Hawks, got into financial difficulties with its Australian operations and had to cede control to financial backer Jindal Steel and Power.
Several Indian financial news services are now reporting the firm owes more than A$900 million to various creditors.
The Economic Times reported there had been offers to take over Gujarat NRE or its assets, but no takeover or bailout bid would be ready by the January 1 deadline.
Nothing to worry about ...
- Arun Jagatramka, in May
“We have received four expressions of interest, but no final resolution plan is on the table yet,” insolvency professional Sumit Binani was quoted saying.
“Time is too short to conclude a resolution plan as the deadline expires January 1. We are exploring all possible measures within the legal provisions of the Insolvency and Bankruptcy Code.”
The Mercury last spoke with Mr Jagatramka when he filed for bankruptcy protection in May.
“Nothing to worry about,” he told the Mercury at the time via Twitter. “Business is having a bright future with coking coal prices down and coke prices looking up.”
