The company asked that the halt remain in place until Monday, or such a time as it is able to make the announcement.
The article in yesterday’s Australian Financial Review exposed solvency concerns for its Wiggins Island coal export terminal in Queensland, with increasing speculation that it will become a distressed debt play.
The terminal is run by WICET, a group consisting of of eight coalminers including Wesfarmers’ Curragh, Xstrata Coal, Yancoal Resources and Bandanna Energy.
The facility is due to start exporting coal in November. But yesterday’s report alleged that some coalminers would be unable to meet their committed export obligations and Bandanna Energy was already in serious danger of this.
According to the report, WICET carries about $2.45 billion in senior debt and $500 million in subordinated debt.
