According to earlier media reports, GVK Group was in talks to sell two gas-based power projects with an installed capacity of 684 mw installed capacity to Andhra Pradesh power utilities so that it could settle its debt of around Rs 1,800 crore through an OTS --one time settlement.
By Mitali Salian
Bankers are currently mulling an offer from a Gujarat government-owned genco to take over the 469-mw gas-based GVK Gautami Power, senior bankers aware of the developments told FE.
The bankers said the genco’s offer includes a payment of 50% of outstanding amount. At the end of March, 2016, the outstanding loans were Rs 1,188.90 crore, according to Capitaline.
They added the GVK Group’s offer to settle their debt through a one-time settlement appeared to be unattractive.
One banker said, “the one-time settlement offer involves getting a sanction from every lender in the consortium before they approach the discom to take over the debt, most certainly at a discount. Irrespective of the repayment involved, even the third-party taking on debt will have their own due diligence process, which means longish timelines, which does not appeal to us at this moment.”
According to earlier media reports, GVK Group was in talks to sell two gas-based power projects with an installed capacity of 684 mw installed capacity to Andhra Pradesh power utilities so that it could settle its debt of around Rs 1,800 crore through an OTS –one time settlement.
The Supreme Court had in September granted interim relief to stressed power firms, directing lenders to maintain status quo on the Reserve Bank of India’s February 12 circular for banks to resolve these cases within 180 days or refer them for bankruptcy proceedings.
Several petitioners, including GMR Energy, RattanIndia Power, Association of Power Producers (APP), Independent Power Producers Association of India, Sugar Manufacturing Association from Tamil Nadu and a shipbuilding association from Gujarat, had intervened in the matter in different courts seeking relief.
On 27 August, the Allahabad high court denied relief to these power companies. Consequently, lenders identified several stressed assets to be referred to the National Company Law Tribunal.