Adani’s Queensland coalmine cited in US investor’s claims of ‘biggest con in corporate history’

1 year ago 60

Scathing allegations, which company rejects as ‘baseless’, will hamper access to Wall Street but surging coal price will ease burden, experts say

The ability of Adani Group to raise money will be curbed after scathing allegations in a report by an activist US short-seller, although surging coal prices that underpin the Indian conglomerate’s contentious Queensland operations will help alleviate some pressure, analysts say.

Adani, which operates the Carmichael coal and rail project via its rebranded subsidiary Bravus, is the target of US investment firm Hindenburg Research, which alleges the company has engaged in a “brazen stock manipulation and accounting fraud scheme”.

A private company called Carmichael Rail and Port Singapore Holdings with ties to Adani paid A$147m for unspecified “work in progress” assets from the Australian operations, without a detailed description.

The same private company paid A$155m for the right to use the rail facilities at the Queensland operation.

The private Carmichael company also received A$100m from an Adani subsidiary to pay off debt.

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