Lenders have decided to sell two key ancillary companies of KSK Mahanadi Power to Medha Servo Drives, a move seen as a setback for Adani Power, the highest bidder for the thermal power company undergoing insolvency process, said people with knowledge of the matter.
Raigarh Champa Rail Infrastructure and KSK Water Infrastructure are the two ancillary companies critical for operating the 1,800-megawatt plant.
Lenders said Medha Servo was chosen since it gave the highest offer for both the ancillary companies. “It offered to pay almost all dues of lenders and thus received the highest requisite vote,” one of the persons said.
For any plan to be approved, at least 66% of lenders must vote in favour. The plan is now awaiting approval from the National Company Law Tribunal (NCLT).
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Adani Power, which offered as to how the Fed might proceed after its September gathering ‘27,000 crore for the parent company, was also in the fray for Raigarh Champa Rail (used to transport coal) and KSK Water. Vedanta and Jindal Power were the other companies keen to acquire the ancillary companies.
The efficiency of the power plant will largely depend on the support from these two special purpose vehicles (SPVs). Since the company is under the purview of the bankruptcy court, there exists an agreement between the two SPVs and the power-generating company. However, the contour of the agreement may change when they get new owners, the people cited above said.
Medha Servo and Venkata Chalam Varanasi, the resolution professional of KSK Water and Champa Rail, did not respond to ET’s request for comment. The RP admitted ‘878 crore and ‘544 crore lender claims, respectively, according to the company’s website.
Lenders of KSK Mahanadi Power received ten financial offers. Other bidders include Capri Global Holdings, Coal India, NTPC, Vedanta, JSW Energy, Naveen Jindal-owned Jindal Steel & Power, iLab India Special Fund, Rashmi Metaliks and Sherisha Technologies, as reported by ET on August 3.
Adani Power made the highest offer of ‘27,000 crore, followed by Capri Global at ‘25,000 crore and NTPC at Rs 22,200 crore.
The PWC-supported resolution professional, Sumit Binani, has admitted ‘29,330 crore in claims from financial creditors for the thermal power company, which operates three units of 600 MW each in Chhattisgarh.
As many as six ARCs jointly control 54.4% of verified claims after acquiring loans from multiple banks.
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