The Northern Territory government says it is aware of issues regarding concerns surrounding the financial status of Darwin Port operator, Landbridge.
The Chinese company signed a 99-year lease with the NT government to operate Darwin Port in 2015, but it is set to make a profit in the nine years since the deal was struck.
“The Territory Government has written to Landbridge seeking further information about their financial status, and ability to meet their payment obligations,” a statement says.
“The additional information will guide the Territory Government’s next steps regarding operations at the port.
“Our immediate focus is to ensure the port remains operational while its longer-term future is confirmed.”
Landbridge is currently restructuring its debt via a refinancing of the $107 million bond for the port lease which is currently in default.
It paid $506 million to secure the 99-year lease, but the company’s most recent directors’ report shows it made a $34 million loss in FY24.
If the payment default is not rectified within 60 days, the directors’ report noted a third party would then be engaged to “sell the port’s assets for the benefit of the financiers”.
It also states if “a sale could not be secured within 18 months under the terms of the Financier Deed the Northern Territory can terminate the Port Lease”.
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