Home > Further wind up orders lodged against Gujarat NRE

Further wind up orders lodged against Gujarat NRE

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Financial trouble for Illawarra-based mining company Gujarat NRE continues with two companies levelling million-dollar wind up orders against the company.

UIL Singapore and Ellton Conveyors have both sought to liquidate the miner as a result of unpaid debt.

Gujarat shareholder , UIL Singapore,  has filed a notice of appearance with the Supreme Court of NSW indicating its intention to liquidate the company over a $15.81 million debt.

PCL Shipping will appear in support of UIL over a $3.54 million debt, Gujarat said.

The hearing for the wind up order is scheduled for March 4.

Meanwhile engineering firm Ellton Conveyors has also lodged wind up proceedings in the NSW Supreme Court over $2.86 million.

In a corporate update last week, company secretary Sanjay Sharma said Gujarat is "seeking necessary legal advice on the above matters and intends to vigorously defend the actions".

"The company will continue to update the market on any development in relation to these matters."

Three other companies are also seeking to reclaim money allegedly owed by Gujarat.

British Marine, Great Investments and Ultrabulk are seeking $2.43m, $1.37m and $2.5m respectively.

Gujarat said it will defend the claim by British Marine but is reviewing its legal options regarding the other two matters.

In October last year contractor RUS Mining also lodged a wind up order against the company.

Gujarat says this matter has been successfully negotiated and settled.

In a meeting tomorrow, shareholders are expected to vote on changing the company’s name to Wollongong Coal.

The rebrand comes after a tumultuous year for the company which was in danger of going under before Jindal Steel took over as majority shareholder.

The new owner has since invested more than $110 million into the company and says it is committed to improving current operations so mining can continue.

Over 50 workers have been made redundant at the company’s two coal mine in the past two months as cost-cutting measures come in to effect.

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