Resurgent Power acquires South East UP Power Transmission Company | The Financial Express

Resurgent Power acquires South East UP Power Transmission Company

The transaction has been funded through a mix of shareholder funds brought in by Resurgent Power and loans raised from State Bank of India.

Resurgent Power acquires South East UP Power Transmission Company
As per the resolution plan, the transaction entailed payment for one-time settlement of outstanding debt and purchase of equity shares for a consideration of Rs 3,251 crore and payout of existing cash balance of SEUPPTCL.

Resurgent power ventures, in which Tata Power holds a 26% stake, on Saturday said that it has completed the acquisition of South East UP Power Transmission Company through an insolvency process.

As per the resolution plan, the transaction entailed payment for one-time settlement of outstanding debt and purchase of equity shares for a consideration of Rs 3,251 crore and payout of existing cash balance of SEUPPTCL.

The transaction has been funded through a mix of shareholder funds brought in by Resurgent Power and loans raised from State Bank of India.

Also Read: Resurgent Power acquires South East UP Power Transmission Company via insolvency process

“Pursuant to the Letter of Intent (LOI) issued by the resolution professional of South East UP Power Transmission Company Limited (SEUPPTCL) and approval of the resolution plan by National Company Law Tribunal, Allahabad (NCLT) vide order dated June 15, 2022, Resurgent Power Ventures Pvt Ltd (Resurgent Power) has completed the acquisition of SEUPPTCL and has settled the debt of all existing creditors as per the terms of the resolution plan,” a company statement said.

The transaction was part of a stressed asset resolution process run by the resolution professional under the supervision of its Committee of Creditors through a competitive bidding process under the Insolvency and Bankruptcy Code, 2016.

SEUPPTCL was incorporated as a special purpose vehicle formed by UP Power Transmission Company Limited (UPPTCL) on September 11, 2009 to implement and operate the specified intra-state transmission system for 35 years under the public-private partnership model on Build-Own-Operate-Maintain & Transfer (BOOT) basis.

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