In a press release, Lanco Infratech has said that the coal supply agreement between Griffin Coal and Perdaman has been terminated. J Suresh Kumar, the chief financial officer of the company tells 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.
“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” said Kumar. “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. “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” he added.
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