The Committee of Creditors has approved a resolution by a consortium, which includes the Adani Power Ltd. (APL), to buy Coastal Energen Ltd. under the Corporate Insolvency Resolution Process (CIRP).
Coastal Energen Ltd. has an imported, 1,200-MW (2X660) coal-based power plant operating in Tuticorin.
In February 2022, The National Company Law Tribunal (NCLT), Chennai, had admitted the insolvency plea filed by the State Bank of India against Coastal Energen, and named Radhakrishnan Dharmarajan as the Resolution Professional (RP) to oversee the resolution process.
The consortium of APL received a Letter of Intent (LoI) from the RP on Saturday. The implementation of the resolution plan is subject to the terms of the LoI, and requisite approvals from the NCLT or any other regulatory authority, courts or tribunals (as the case may be) under applicable laws, APL said in a stock exchange filing.
According to sources, the RP had admitted claims of about ₹12,300 crore from creditors against Coastal Energen. The consortium of APL had submitted a resolution plan for about ₹3,500 crore, they added.
The other plans that were considered by the lenders included Jindal Power Limited and the Chennai-based Sherisha Technologies, and a settlement proposal by the promoters of Coastal Energen.
Coastal Energen’s Unit-I has a power purchase agreement to supply power to Tangedco for a period of 15 years ending September 30, 2028.
