An Indian bankruptcy court has approved Europe’s largest renewable energy company Statkraft’s resolution plan for Lanco Mandakini Hydro Energy.
Lenders including Punjab National Bank, Canara Bank, Bank of Baroda and Axis Bank will recover ₹180 crore against the secured financial creditors’ claim of ₹1,311 crore, entailing a 14% recovery on the sale.
The Allahabad bench of the National Company Law Tribunal approved the resolution plan and pronounced the order on March 23.
According to the resolution plan, Statkraft will pay a total of ₹180 crore including ₹149.61 crore to secured financial creditors within 90 days of approval of the resolution plan and ₹27.8 crore towards meeting the payment for costs of the corporate insolvency resolution proceedings.
Bhrugesh Amin, the resolution professional backed by BDO Restructuring Advisory, had admitted secured financial creditors’ claim of ₹1,311 crore with Punjab National Bank being the largest lender followed by Canara and Axis. On 11 June 2020, NCLT admitted the company for insolvency proceedings on an application filed by Axis Bank.
ReNew Power Services and eight others had shown interest in the initial rounds while two resolution applicants Statkraft IH Holding and Scatec Solar Netherlands had submitted firm bids.
However, the resolution plan of Scatec Solar was not considered by the creditors on account of the commercial wisdom of the CoC. While the resolution plan submitted by the successful resolution applicant -Statkraft IH Holding – was approved by a 100% vote of the CoC. According to the registered valuer’s report, the fair value of the corporate debtor is ₹187.72 crore and the liquidation value is ₹123.60 crore.
Statkraft IH is a 100% owned subsidiary of Statkraft, wholly owned by the Norwegian state.
Lanco Mandakini Hydro Energy is a hydroelectric generation company engaged in the construction of a 76 MW power plant on the Mandakini river in Uttarakhand.
Source: Economic Times