It has been a bad day for Essar Energy, the India-focused power firm.
The company was given the go-ahead to clear forests at its coal block in the Madhya Pradesh state in India where it hopes to build a power plant.
But it revealed a pretax loss of $1.14bn in the 15 months to March 31 (the company changed its accounting period this year), due to the Indian Supreme Court's ruling that it must pay a $1.2bn tax bill. Revenues were $22bn, up from $10bn last year.
The share price subsequently sank 10p, 8%, to 116.8p, as the company said it plans to take "appropriate legal action" including making an appeal.
The decision by the court in January has been tough on the company, which dropped out of the FTSE 100 as a result.
The company is now negotiating with its lenders for a new $1bn loan to cover the sales tax cost if an appeal is unsuccessful.
In a triple whammy, the company is also waiting on the Indian government to make a decision on coal mining which has been delayed.
Shares are a long way off from the 420p they came to market with when it listed in 2010.
