The National Company Law Tribunal (NCLT) has cleared the acquisition of bankrupt SKS Power Generation by Sarda Energy & Minerals for Rs 2,200 crore. With this, Indian banks, which have an exposure of Rs 1,890 crore in the company, will be able to recover their entire exposure in the electricity generation company, as per a source in the company.
SKS owns a 600-MW power plant in Chhattisgarh, which is currently being run by NTPC. The committee of creditors, led by the State Bank of India and Bank of Baroda, approved the resolution plan with 100 per cent voting in favour of Sarda’s offer and against the offers made by other bidders.
When contacted, Sarda Energy & Minerals did not comment.
One of the bidders said there are not many coal-based projects up for sale now under the Insolvency and Bankruptcy Code (IBC), and SKS Power, with its own coal supply, was an attractive buy. The company was sent to the bankruptcy court after it defaulted on loans worth Rs 1,890 crore to State Bank of India and Bank of Baroda in April 2022.
Hong Kong-based Agritrade Resources had earlier bought the plant from Indian lenders in November 2018 as part of a one-time settlement scheme. But Agritrade itself fell into financial troubles and could not service the loan. SKS Power Generation (Chhattisgarh) was set up by Anil Gupta of SKS Ispat.
In May this year, the National Company Law Appellate Tribunal (NCLAT) had allowed Sarda Energy to seek the permission of the NCLT to get clearance for its offer. Seven companies, including Vantage Point Asset Management Pte. and Torrent Power, had submitted their offers for the company.
First Published: Aug 13 2024 | 7:46 PM IST
