INSUBCONTINENT EXCLUSIVE:
that had deferred the bankruptcy proceedings.
Adani Power was the highest bidder for the stressed thermal project with an offer of Rs
27,000 crore, which ensured 92% of the recovery for lenders.Click here to connect with us on WhatsApp
A Bench led by Chief Justice DY
Chandrachud said that the high court had neither the jurisdiction to defer the insolvency process nor to ask for the consolidation of
insolvency proceedings of the thermal power company and its two subsidiaries - KSK Water Infrastructure and Raigarh Champa Rail
order without issuing notice to other parties
The HC order had come on a petition filed by the Uttar Pradesh Power Corp.
KSK Mahanadi Power Company had a 3,600 MW coal-based power
Currently, it has three operational units of 600 MW each and the rest of its units are under various stages of construction.
The lenders
have made claims of Rs 29,330 crore against KSK Mahanadi, which was sent for debt resolution in 2020 after the firm defaulted on its debt
payments.
Several banks, including the State Bank of India (SBI), have sold their loans to asset reconstruction companies (ARCs) to
recover part of their dues
KSK Mahanadi had power purchase agreements with Andhra Pradesh, Tamil Nadu and Uttar Pradesh, but defaulted on loans due to lack of coal
The company was allotted two coal blocks in Chhattisgarh but in 2014, following a Supreme Court judgement, the allocation was cancelled
tried to resolve the project under its flagship scheme SAMADHAN, which was aimed at resolution of stressed assets outside the NCLT
However, due to reluctance of other lenders and lack of buyers, the process under this scheme was halted and the project was moved to the
Steel and Power, Vedanta, among others.First Published: Oct 14 2024 | 8:58 PMIST
