Source - CNBC-TV18

In a press release, Lanco Infratech has said that the coal supply agreement between Griffin Coal and Perdaman has been terminated

Mr J Suresh Kumar CFO of Lanco Infratech told CNBC-TV18 in an exclusive interview that the agreement was terminated because Perdaman did not achieve all the conditions precedent related to financial closure in the agreement.

Mr Kumar said that “The content of the coal supply agreement had certain conditions precedent which had to be fulfilled from Lanco’s side, Griffin’s side as well as Perdaman’s side. Perdaman could not meet one such condition precedent relating to financial closure and since the date had passed in line with this CFA, we went ahead and terminated.”

However, in an act of good faith, Lanco has agreed to give Perdaman till the 15th of October to achieve financial closure. He added that “Incase they agree to the same, we will continue with the CFA terms as they stand. But if they don’t accept the offer, then the termination stands.”

Q - Could you confirm this news for us?

A - If you see the press release that we have released to the exchanges as well as to the media, there were certain conditions precedent related to financial closure in line with the coal supply agreement by Perdaman which was not achieved and in line with that, the terms of the coal supply agreement were formally terminated.

Of course in good faith we have offered to have a relook at the termination and provide Perdaman additional time until October 15th to achieve financial closure. Incase they agree to the same, we will continue with the CFA terms as they stand. But if they don’t accept the offer within a certain date, then the termination stands.

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