JSW Energy Gets NCLT Approval To Acquire Bankrupt KSK Mahanadi Power
JSW Energy’s resolution plan proposes to pay a total of $1.85 billion to KSK Mahanadi’s creditors
(The Corner Office Journal) – Indian power producer JSW Energy Ltd. received the National Company Law Tribunal’s (NCLT) approval to acquire the bankrupt KSK Mahanadi Power Company Ltd.
The NCLT’s Hyderabad bench, comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri, approved JSW Energy’s resolution plan for KSK Mahanadi, according to the tribunal order dated 13 February.
The development came after KSK Mahanadi’s Resolution Professional Sumit Binani sought the NCLT’s approval for the resolution plan cleared by the bankrupt company’s committee of creditors.
The creditors approved the plan with 100% voting share on 10 January 2025.
KSK Mahanadi was admitted into corporate insolvency resolution process on 3 October 2019 following a petition by its financial creditor Power Finance Corporation.
Resolution Amount & Funding
JSW Energy’s resolution plan proposes to pay a total of 16,084.08 crore rupees ($1.85 billion) to KSK Mahanadi’s creditors against the admitted liabilities of 26,094.57 crore rupees, the order showed.
Total claimed amount stood at 39,409.17 crore rupees.
KSK Mahanadi’s financial creditors include Aditya Birla ARC Ltd., Prudent ARC Ltd., Power Finance Corporation Ltd., Rural Electrification Corporation, UCO Bank, Bank of India, IDBI Bank and Phoenix ARC Private Ltd.
JSW Energy, a part of JSW Group, plans to fund the acquisition through a debt of 13,000 crore rupees and another 3,084.08 crore rupees in the form of quasi-equity.
Last month, JSW Energy said it received a letter of intent to acquire KSK Mahanadi after its creditors declared the company successful applicant and approved its resolution plan.
Megawatt Boost
The power generation capacity of JSW Energy will get a boost following the acquisition of KSK Mahanadi due to the addition of 3,600-megawatt (MW) capacity.
KSK Mahanadi Power owns a 3,600-MW thermal power plant located in the state of Chhattisgarh. Presently, 1,800-MW (600-MW x 3 units) is operational, which is 95% tied-up under long and medium-term power purchase agreements.
An additional 1,800-MW (600-MW x 3 units) is under-construction, out of which, one unit (600 MW) is 40% completed and other units remain under construction.
Note: $1 = 86.8387 Indian rupees
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