NEW DELHI: The Hyderabad bench of the National Company Law Tribunal (NCLT) on Thursday approved the Rs 16,084 crore resolution plan submitted by JSW Energy Limited for KSK Mahanadi Power Company Limited, a Chhattisgarh-based thermal power company.
The corporate insolvency resolution process against KSK Mahanadi Power Company Limited was initiated by Power Finance Corporation Limited in October 2019.
The Resolution Professional (RP) – Sumit Binani – received Rs 32,335 crore claims from different creditors including 19 banks and financial institutions.
In response to the Expression of Interest issued by the RP, a total of 10 Prospective Resolution Applicants (PRA) submitted the Resolution Plan, which includes NTPC Limited, Vedanta Ltd. and Adani Power Limited.
In order to maximise the value of the assets, a Swiss challenge process was adopted and JSW Energy Limited emerged as the highest bidder. The Resolution plan was approved with 100% voting from the committee of creditors (CoC).
The resolution amount of Rs 16,084 crore is about 50% of the amount claimed and 235% of the liquidation value of the company at Rs 6,848.
As per the resolution plan, an upfront cash payment of Rs15,985 crore will be paid to the financial creditors, and an upfront payment of Rs 99 crore to operational creditors.
Of the Rs 16,084 crore, JSW Energy will raise Rs 13,000 crore in the form of debt and Rs 3,084.08 crore in the form of quasi-equity.
