Sources told FE: The EGM ratified the decision to increase the number of directors. Of the 13 directors, Pinnacle would be represented by six, while the balance seven by lenders. Subsequently, the meeting of the newly-constituted board was held and new directors were accommodated. With todays developments, the Lehman Brothers-promoted Pinnacle will formally take over the debt and equity in the Spectrum project.
SPGLs original promoters, including Rolls Royce, Spectrum Technologies USA and Bambino Group and associates would be allotted preference shares for 15 years. Pinnacle will shortly appoint a company for the purpose of operation and maintenance of 2008 MW project. The project is generating around 120 MW at present due to shortage of gas supply.
Sources said that Asset Reconstruction Company of India Limited (ARCIL) had received offers for the sale of its interests from Deutsche Bank, Lehman Brothers and Ganta Infrastructure. The project was managed and controlled by Arcil since December 2005.
Arcil had already paid to IDBI, ICICI and other lenders equivalent to their exposure in the project.