SKS Power Gets More Time For Completion Of Insolvency Resolution

India’s National Company Law Tribunal (NCLT) recently granted an extension of 60 days to complete the corporate insolvency resolution process (CIRP) of SKS Power Generation (Chhattisgarh) Ltd.

The development came after SKS Power’s resolution professional filed an application with the Mumbai bench of the NCLT, seeking additional time for the resolution process of the company, according to the bankruptcy court’s order dated 24 January.

The 270-day timeline allowed under the law to complete the CIRP was coming to an end on 24 January.

“The applicant has submitted that he has received seven resolution plans from the prospective resolution applicants for resolution of the corporate debtor,” NCLT’s Judicial Member Kishore Vemulapalli and Technical Member Prabhat Kumar said in the order.

SKS Power’s creditors on 2 January had voted to seek an extension of 60 days from the NCLT for completion of the CIRP and in view of this, extension prayed is granted, they noted.

The company’s CIRP period will now expire on 25 March, according to the order.

Bidders, including Reliance Industries Ltd., Adani Group, state-owned NTPC Ltd., Torrent Power Ltd., Jindal Power Ltd., Sarda Energy & Minerals Ltd. and Singapore-based Vantage Point Asset Management are in race to acquire the distressed company, according to the Economic Times. Their initial resolution plans are in the range of 1,400 crore-1,600 crore rupees ($171.64 million-$196.16 million), the report said.

SKS Power, which has set up a coal-based thermal power plant in Raigarh district of Chhattisgarh state, was admitted into the CIRP on 29 April 2022. The development came after SKS Power’s financial creditor Bank of Baroda filed a petition against the company, claiming a default of about 110.52 crore rupees.

Ashish Arjunkumar Rathi is the resolution professional of the company.

(Note: $1= 81.5654 Indian rupees)