The Hyderabad bench of the National Company Law Tribunal (NCLT) on Thursday approved Sajjan Jindal-promoted JSW Energy’s revival plan for KSK Mahanadi Power Company Ltd (KPMCL).
Bankrupt KPMCL has admitted liabilities of more than ₹32,335 crore. JSW Energy’s offer is nearly half of that at ₹15,985 crore.
The NCLT bench comprising judicial member Rajeev Bhardwaj and technical member Sanjay Puri, in an oral order, said the approval was subject to the proposal getting clearance from the Competition Commission of India.
The detailed order was not available at the time of filing the story.
JSW Energy declined to comment while KPMCL resolution professional Sumit Binani did not respond to an email seeking comment.
KMPCL owns a 3,600 MW thermal power plant in Chhattisgarh, utilising domestically sourced coal. Half of the capacity (600 MW x 3 units) is operational with power purchase agreements for 95% while the remaining units are under construction.
In November 2019, the bankruptcy court admitted the company under the Corporate Insolvency Resolution Process in an application filed by Power Finance Corporation, after the company defaulted on dues of over ₹1,315 crore.
Six bidders had shown interest in acquiring the company through the bankruptcy process. ET on October 28 reported that in the 11th round, JSW Energy remained the sole bidder. The company offered a 26% equity stake to the lenders and another Rs 100 crore to operational creditors to acquire the company.
After the completion of this acquisition, JSW Energy’s locked-in thermal generation capacity would go up to 7.5 GW and total locked-in generation capacity to 28.2 GW.
Source: Economic Times