Energy Australia investigated for Coalpac bail out

EnergyAustralia is in negotiations with the creditors of a failed coal operation in the New South Wales Central West about a possible bail out, as reported by ABC News.

A number of companies, including Coalpac, involved in mining in the Lithgow region went in to administration in October. It came less than a month after a plan to expand open cut operations near the Blue Mountains World Heritage Area was recommended to be rejected. The administrators have told creditors EnergyAustralia is the process of developing a potential deed of company arrangement proposal.

The proposal is likely to involve the companies applying for a modification of the current approvals for the Cullen Valley and Invincible Colliery mines.

If the approvals are granted, EnergyAustralia would acquire shares in some or all of the companies, as reported by ABC News.