RattanIndia Power Faces Insolvency Petition From State-Run REC

RattanIndia Power Ltd. said state-run REC Ltd. filed an insolvency resolution petition against the company.

REC filed the petition against the company under Section 7 of the Insolvency and Bankruptcy Code (IBC), the Indian power producer said in a stock exchange announcement.

The government-run company holds 0.001% redeemable preference shares of 28.72 crore rupees ($3.44 million) in RattanIndia Power. The shares were issued in favor of REC on 27 December 2019.

RattanIndia Power said it strongly disputes the eligibility and entitlement of REC to seek the initiation of proceedings against the company under the IBC.

The company, which counts Goldman Sachs and VardePartners as investors, will pursue legal remedies in the matter, it added.

RattanIndia Power has installed capacity of 2,700 megawatts (MW) thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra state, with investment of 18,615 crore rupees, according to its website. The power plants are spread over an area of 2,400 acres, it said.

Note: $1 = 83.4411 Indian rupees

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