Lenders to Coastal Energen, led by State Bank of India (SBI), on Tuesday sought bids for a 51% stake in the company for the second time in five months.
As of December 2016, Coastal Energen’s outstanding term debt stood at `6,132 crore, while its working capital outstanding was `831.53 crore as on March 31, 2017. It has also availed non-fund based facilities worth `282.57 crore as on July 31, 2018. SBI Capital Markets (SBICaps) is running the process on behalf of the lenders. Earlier, it had sought bids on June 14 for the same power asset as the RBI’s February 12 circular withdrew all debt recast schemes, including strategic debt restructuring, which had been implemented in the case of Coastal Energen.
In the bid document, SBICaps said, “The bidder should have developed and operating at least a 300-MW thermal power plant. In case where the bidder does not have the experience in developing and operating a 300-MW thermal power plant, such bidder may tie-up with a technical partner who meets the above technical criteria and may bid as a consortium or engage an Operations and Management (O&M) contractor which is operating at least a 300-MW thermal power plant.” The engagement of O&M contractor should be for a period of at least five years, the document said.
Coastal Energen’s 1,200-MW imported coal-based thermal power plant at Tuticorin, Tamil Nadu, is among the 34 power assets with a capacity of 40,130 MW, which may have headed to the National Company Law Tribunal. The circular directed banks to resort to resolution under the Insolvency and Bankruptcy Code (IBC) for NPAs of over `2,000 crore if they could not be resolved by other means by August 27.
However, the SC halted the process by ordering that fresh insolvency proceedings against corporate defaulters under the RBI mandate would not be initiated till it hears the matter on November 14.
Source: Financial Express