Sage eyeing Griffin Coal

Tony Sage is reportedly running the ruler over Griffin Coal, with the Perth businessman eyeing the collapsed company's debt.

The Australian newspaper website has reported Mr Sage as saying that he was close to finalising due diligence on Griffin Coal, which called in administrators early this year.

He said once due diligence was completed, he would be talking to key stakeholders of the group.

Griffin produces thermal coal from two mines in WA and supplies it to domestic power stations.

Mr Sage's move on Griffin Coal's debt would be similar to his company, Cape Lambert Resources' acquisition of CopperCo's debt after it collapsed in 2008.

Cape Lambert then bought other CopperCo assets including the Lady Annie copper mine, which it had planned to spin out into separate entity, Q Copper.

Q Copper was to list on the local bourse however its initial public offer was pulled earlier this year due to adverse market conditions.

Griffin Coal has about $1 billion in debt, however Mr Sage was today reported as saying that it was likely to be up to $3 billion.

Another Perth-based company, Aviva Corporation, earlier this year said it had been approached by third parties that were interested in making a proposed joint offer for Griffin's assets.

Aviva previously had financial backing from US company AES Corp for its now stalled Coolimba coal-fired power proposal at Eneabba.