Bluewaters Power 1 Pty Ltd v Donnelly, in the matter of Griffin Coal Mining Company Pty Ltd
COURT OR TRIBUNAL
Federal Court of Australia
DATE FILED (OR FIRST HEARING DATE)
21/09/2023
LITIGATION TYPE
Corporate Accountability
SUBJECT MATTER
Other
REVIEW TYPE
N/A
SUMMARY
Bluewaters operates a coal-fired power station which supplies 10-20% of electricity demand in WA. Bluewaters had long-term coal supply agreements with Griffin Coal, that operated the Ewington Mine. These agreements were originally signed in 2006/08 with a 30 year term plus a 10 year option for renewal. Griffin Coal collapsed and receivers were appointed.
Bluewaters Power sought an investigation into the conduct of Griffin Coal’s receivers. The receivers had formed the view that the coal supply agreements with Bluewaters were unprofitable, that their existing adversely affected the value of Griffin Coal’s property and their ability to realise secured property to perform and discharge Griffin Coal’s obligations to its financiers. The receivers therefore tried to disclaim the coal supply agreements under s 568 of the Corporations Act.
Bluewaters sought an investigation into the receivers. The court did not order an investigation into the receivers but found that found that the terms of the agreements ‘make it plain that the receivers are not entitled to ignore Griffin Coal’s obligations under the CSAs’.
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