Questions have been raised about Wollongong Coal's solvency, with an auditor saying its debts far outstrip its assets.
Wollongong Coal has declared a loss of $379 million for the year, lodging its annual report with the Australian Securities Exchange.
It booked $62 million in revenue from sales of coal from Wongawilli, but it had to write down the value of its assets by $274 million, to $345 million, after questions were raised about their value. Liabilities come to more than $1 billion.
"A material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern and therefore, the group may be unable to realise its assets and discharge its liabilities in the normal course of business," auditor UHY Haines Norton said.
Wollongong Coal says it is restructuring its debt payment arrangements and has a loan facility from parent company Jindal Steel and Power.
Wollongong Coal also informed investors that long-time non-executive director Maurice Anghie had died.
"We are deeply shocked and saddened," chairman Milind Oza said.
"Mr Anghie was one of the longest serving directors. It was a great privilege to know and work with him."