Adani Power Consortium Gets Creditors Nod To Acquire Bankrupt Coastal Energen

Adani Power Ltd. said its consortium secured the approval from Coastal Energen Private Ltd.’s committee of creditors to acquire the bankrupt company.

The creditors of Coastal Energen, which is undergoing corporate insolvency resolution process (CIRP) since 4 February 2022, approved the resolution plan submitted by the company’s consortium, Adani Power said in a stock exchange announcement.

The company’s consortium received a letter of intent (LOI) from Coastal Energen’s resolution professional Radhakrishnan Dharmarajan on 23 December, it added.

The Indian power producer said the implementation of the resolution plan is subject to the terms of the LOI, as well as requisite approvals from the National Company Law Tribunal (NCLT) and other regulatory authorities.

Adani Power, a part of Adani Group, did not disclose further details.

The NCLT admitted an insolvency petition against Coastal Energen on 4 February 2022 after its financial creditor State Bank of India approached the tribunal, claiming default.

Total admitted claims by the company stood at 12,247.55 crore rupees ($1.47 billion) as of 31 August 2023, according to Coastal Energen’s website.

Coastal Energen, the power generating flagship company of Coal and Oil Group, operates a 1,200-megawatt coal-fired thermal power plant in Tuticorin district in the southern Indian state of Tamil Nadu.

Note: $1 = 83.1774 Indian rupees

(Send feedback to editor@cornerofficejournal.com)