In a major development, National Company Law Tribunal (NCLT), Hyderabad on Thursday approved JSW Energy Ltd’s ₹16,084.08 crore resolution plan to acquire bankrupt KSK Mahanadi Power Company Ltd.
As per the approved plan, against the admitted claims of over ₹26,094 crore, the KSK Mahanadi’s creditors will get ₹16,084.08 crore.
The plan provides for upfront cash payment of ₹15,985.08 crore to financial creditors of KSK Mahanadi, which is nearly 50% of their admitted claims. The major financial creditors include Aditya Birla ARC Limited, Prudent ARC Limited, Power Finance Corporation Limited, Rural Electrification Corporation among others.
JSW Energy plans to fund the acquisition through ₹13,000 crore in debt and ₹3,084.08 crore in the form of quasi-equity.
JSW will identify a bid company to buy KSK Mahanadi. The bid company would be merged with the KSK Mahanadi, as per the approved resolution plan.
The NCLT had admitted KSK Mahanadi into the Corporate Insolvency Resolution Process on October 3, 2019 , following a petition filed by Power Finance Corporation.
