Adani Power Ltd. received the approval from Lanco Amarkantak Power Ltd.’s committee of creditors to acquire the bankrupt company.

Lanco Amarkantak’s creditors approved the resolution plan submitted by Adani Power, the Indian power producer said in a stock exchange announcement. The company received a letter of intent (LoI) from the bankrupt energy producer’s resolution professional on 4 March, it added.

Adani Power, a part of Indian conglomerate Adani Group, didn’t disclose the financial details.

In December 2023, the Economic Times reported that Adani Power raised its offer for Lanco Amarkantak for the second time, offering its lenders 4,100 crore rupees ($495 million) to acquire the company.

Total admitted claims from Lanco Amarkantak’s financial creditors stood at 14,631.71 core rupees at the end of 31 January 2024.

Lanco Amarkantak owns and operates a 2x300-megawatt (600-MW) thermal power plant (Phase-I) at Pathadi village in Korba district of Chhattisgarh, according to the statement. The Phase-I capacity is tied up with Haryana and Madhya Pradesh power distribution companies under the long-term power purchase agreements, it said.

The company, whose financial creditors include Power Finance Corp., REC Ltd., IDBI Bank, is also setting up a 2x660-MW (1,320-MW) expansion capacity under Phase-II.

Adani Power said the resolution plan’s implementation is subject to the terms of the LoI as well as requisite approvals from the National Company Law Tribunal (NCLT) and other regulatory authorities.

Note: $1 = 82.9022 Indian rupees

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