Opposition questions the government on payments to Ad Astra Corporate Advisory regarding the Griffin Coal insolvency, seeking details on contract value, advice on insolvency trading, and expected outcomes. Government provides limited details, citing commercial sensitivity.

AnsweredQoN 976Legislative Council
Asked
31 August 2023
Portfolio
State and Industry Development, Jobs and Trade

QuestionView source ↗

GRIFFIN COAL — KPMG AND AD ASTRA CORPORATE ADVISORY
976. Hon Dr STEVE THOMAS to the minister representing the
Minister for State and Industry Development, Jobs and Trade:
I refer to my question without
notice 934 asked yesterday, 30 August 2023, on the appointment of Ad Astra
Corporate Advisory to advise the government on the problems at the insolvent
Griffin Coal that have resulted in a blowout in liquidator grants from the government,
now totalling $27.3 million, to the receivers and managers.
(1) What is the
value of the contract with Ad Astra, and how many additional payments above the
contract have been made?
(2) Has Ad Astra advised the
government that Griffin Coal has been trading whilst insolvent?
(3) If yes to
(2), from what date did Ad Astra advise the government that Griffin Coal
commenced trading whilst insolvent?
(4) Has Ad Astra advised the government what the
expected final outcome of the financial crisis at Griffin Coal will be;
and, if so, what was that advice?
(5) If no to (4), what is the
government paying Ad Astra for?

AnswerView source ↗

I thank the Leader of the Opposition
for some notice of the question.
(1) To date, the state government has paid $286 869,
including GST, for Ad Astra Corporate Advisory's services. There is no
fixed term under the engagement with Ad Astra. This is normal for contracts
involving negotiations as the work is
heavily dependent on the issues that arise and the level of cooperation of the
counterparties.
(2) No.
(3) Not applicable.
(4)–(5) Treasury
has appointed Ad Astra Corporate Advisory to assist the government with the
discussions with commercial parties with a view to resolving Griffin Coal's
financial difficulties through commercial agreement, based on commercial
parties paying a price for coal that supports the stable operation of the mine.
Those discussions remain ongoing and are commercially sensitive.

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