Gautam Adani-led Adani Group is in talks with global credit funds to raise up to $400 million in debt against assets of the Carmichael coal mine, according to a report by the Economic Times (ET) on Monday.
According to ET report, Adani Group, which saw about $145 billion wiped off its market value after a US short seller accused it of improper use of offshore tax havens, operates the Carmichael coal mine, the North Queensland Export Terminal, which is a major port for Queensland coal exports, as well as a solar farm in Australia.
The North Queensland Export Terminal, which is controlled by the Adani family trust, is being considered to raise funds for the group, according to the report on Monday, citing sources aware of the fundraising.
Earlier this month, Australia's corporate regulator said it will review Hindenburg's report that has flagged a wide range of concerns about the group led by billionaire Gautam Adani. The conglomerate is in talks with several large high-yield global credit funds and so far received two indicative term sheets from potential lenders which include hedge fund Farallon Capital Management, ET reported.
However, Farallon Capital declined to comment on the report, while Adani Group did not immediately respond to Reuters request for a comment.
Meanwhile, Gautam Adani has hired top-shelf US crisis communication and legal teams, scrapped a $850 million coal plant purchase, reined in expenses, repaid some debt and promises to repay more, according to a report by news agency Bloomberg.
According to the report, the ports-to-power conglomerate is eyeing to claw back the narrative with this playbook and calm jittery investors and lenders after US-based Hindenburg Research on January 24 accused it of accounting fraud, stock manipulation, and other corporate governance lapses. Adani Group, however, denies these allegations.
Australia's corporate regulator recently said it would review a short-seller report that had flagged a wide range of concerns about Adani Group, as reported by Reuters.