SKS Power bankruptcy: CoC receives 1,950 cr from Sarda Energy and Mining
Torrent Power claims to be the highest bidder for SKS Power Generation.
Lenders to SKS Power Generation have received an advance of Rs 1,950 crore from Sarda Energy and Mining, the successful bidder for the debt-ridden thermal power producer, the insolvency appellate tribunal NCLAT was informed on Tuesday.
Moreover, allegations of ‘malice’ or siding with a party in approving Sarda Energy’s resolution plan were also rejected during the NCLAT proceedings by senior advocate Mukul Rohatahi, representing the lenders.
A proper assessment has been made on the basis of the earlier directions of the NCLAT in this matter and a “clear decision” has been taken by the Committee of Creditors (CoC) of SKS Power Generation.
“There is no malfeasance and we are not siding with one party or the other. We have taken a decision based on the commercial decision,” he said.
Torrent Power and Singapore-based Vantage Point Asset Management Pte., which were also in the race to acquire SKS Power Generation, have challenged the NCLT ruling and approved Sarda Energy’s bids at the National Company Law Appellate Tribunal (NCLAT).
They are challenging the order passed by the Mumbai-based bench of the National Company Law Tribunal (NCLT), which on August 13 approved the bid of Sarda Energy and Mining (SEML). The tribunal also rejected their pleas seeking objections to the selection of SEML’s bid by the CoC.
Torrent claims to be the highest bidder for SKS Power Generation.
Senior advocate Abhishek Manu Singhvi, appearing for the petitioners, questioned the rationale for selecting the bid of Sarda Energy and Mining. He submitted that the bid was modified in the garb of clarification on the resolution plan it had sought.
Alleging malice, Singhvi said the CoC had also allowed an increase in margin (bank guarantee) from Rs 103 crore to Rs 161 crore and that too in a “discriminatory manner”.
While referring to the NCLT order approving Sarda’s bid, he said that the NCLT is not a “rubber stamping” body and has followed the CoC decision in this entire matter. They have rejected Torrent’s request on the basis of the 34th CoC meeting and a copy of the minutes of the said meeting was not even provided to them.
“We request a stay of proceedings,” Singhvi said, adding that there has been a misinterpretation of the NCLAT’s earlier ruling in the case.
“This is discriminatory. Give everyone a chance, let the best win….”, he said
Rohatgi said the selection of bids was based on a number of factors, including the “commercial wisdom” of the lenders as Torrent Power claimed to be the highest bidder.
He added that the clarifications sought by the lenders on the resolution plan submitted by Sarda Energy and Mining do not amount to a modification of the offer.
“Yesterday, on August 19, the CoC received an amount of Rs 1,950 crore from the successful resolution applicant Sarda Energy and Mining. Therefore, there is no question of consideration for the second time,” he noted.
The hearing remained inconclusive and the NCLAT would continue the hearing on Wednesday.
Besides Torrent Power and Vantage Point Asset Management, several other companies were in the race, such as NTPC and Jindal Power. However, SEML’s resolution plan was voted in favour of SKS Power Generation by the Committee of Creditors (CoC).
Torrent Power approached the NCLT after the Resolution Professional of SKS Power Generation filed a petition asking the insolvency court to approve SEML’s bid.
The Ahmedabad-based company told the NCLT that it had made the highest cash advance payment to the creditors of SKS Power Generation after considering the submissions of the RP and the lenders.
SKS Power Generation has set up a coal-based thermal power plant at Binjkote and Durramuda in Raigarh district, Chhattisgarh. The thermal power project consists of 4X300 MW capacity units for power generation.
Currently, Phase I of 2X300 MW capacity has been completed and the company is in the process of starting the implementation of Phase II of 2X300 MW capacity, according to information on its website.
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First publication: Aug 20, 2024 | 7:51 PM IST