Landbridge Group, the Chinese company leasing Darwin Port in Australia, is grappling with financial challenges, including a default on a US$107 million bond and mounting debts. The Northern Territory (NT) government has raised concerns, requesting clarity on Landbridge’s financial stability and reviewing its rights under the 99-year lease agreement.

The company is restructuring its debts through asset sales and refinancing, aiming to stabilize its finances by 2025. However, auditors PwC have warned of potential insolvency, which could trigger a forced sale of Darwin Port. If a sale fails within 18 months, the NT government could terminate the lease.

Coalition MPs viewed the situation as an opportunity to reclaim the strategically important port, urging the government to act under critical infrastructure laws. Despite losses of US$37 million in FY24, Landbridge remains optimistic, citing Darwin Port’s record US$34 million EBITDA as a sign of strong operational performance.