Adani Power gets NCLT’s nod to acquire Lanco Amarkantak Power for Rs 4,101 crore
Adani Power Ltd's resolution plan to acquire Lanco Amarkantak Power Ltd (LAPL) through the insolvency resolution process.
The company has admitted liabilities of Rs 15, 633 crore. Gautam Adani promoted listed power company had proposed to pay Rs 4,101 crore to acquire it through the bankruptcy process.
“Successful acquisition and implementation of the resolution plan for acquisition of LAPL will advance APL's (Adani Power) position as India’s leading private sector power producer, with a combined operational power generation capacity of 15,850 MW,” said Adani Power in its stock exchange filing on Thursday.
The distressed company owns and operates a 600 MW thermal power plant at Pathadi Village in Korba District of Chattisgarh. The company has long-term power purchase agreements with Haryana and Madhya Pradesh through Power Trading Corporation Ltd.
The company also has 2.784 MMT of long-term Fuel Supply Agreement with Coal India Ltd’s subsidiary South Eastern Coalfields Limited (SECL). Additionally, LAPL is also setting up a 2x660 MW (1320 MW) expansion capacity under Phase II.
The bankrupt power company owes about Rs 14,631 crore to its secured financial creditors. The company’s major secured creditors include Power Finance Corporation, Rural Electrification Corporation, IDBI Bank, Indian Overseas Bank, Axis Bank and Life Insurence Corporation of India.
LAPL has Rs 1,800 crore cash in the company solely on account of operations from the first phase.
Lanco Amarkantak Power was admitted for corporate insolvency
