Lanco Infratech gets favourable ruling in Australia court; stock up nearly 8%

NEW DELHI: The Supreme Court of Western Australia has dismissed an application filed by Perdaman Chemicals and Fertilisers to restrain Lanco Infratech from mortgaging Griffin coal assets.

"Perdaman's application for a freezing order refraining Griffin from entering into a charge or security without notice to Perdaman, in the Supreme Court of Western Australia against Griffin Coal Mining Pty Ltd, a group company of Lanco Infratech Ltd has been dismissed," a Lanco Infratech statement said.

“The company is also open to out-of-court settlement with Perdaman to resolve the issue”, said J Suresh Kumar, CFO, Lanco Infratech Ltd in an interview with ET Now today.

“Griffen would require capex to fund its growth plans in next 3-4 years and with embargo removed from creation of securities it will aid in the process”, added J Suresh Kumar

At 02:00 PM, shares in Lanco Infrtech Ltd were trading 7.6% higher at Rs 18.95, however for the year the company has lost more than 70%.

According to media reports, hearing of the application took place on July 27 before Justice Beech of the Supreme Court of Western Australia.

Perdaman Chemicals and Fertilisers has filed AUD 3.5 billion dollars (about Rs 16,600 crore) lawsuit against Lanco Infratech for reneging a coal supply commitment signed in 2008.