As Sarda Energy deposits ₹1.9kcr for SKS power, deal challenged
National Company Law Tribunal (NCLT) approving its takeover of SKS Power Generation Ltd, winning bidder Sarda Energy and Minerals has deposited ₹1,950 crore into an escrow account with Bank of Baroda (BoB) — ahead of the 45-day deadline set by lenders.
In a stock exchange filing Tuesday, Sarda Energy confirmed the payment, including ₹1,805 crore paid to financial creditors of SKS Power, State Bank of India and BoB, as well as additional expenses for the insolvency process. It also includes excess cash in the company to be given to lenders. The NCLT on August 13 approved the transaction, with BoB Capital as the process advisor.
«The transfer was made on earlier this week well ahead of the 45-day timeline provided for in the resolution plan. Sarda has raised a majority of the funds from banks with about 30% from internal accruals,» said a person familiar with the deal.
Sarda's rush to pay the money comes amid losing bidders Torrent Power and Vantage Point Asset Management challenging the NCLT order in the National Company Law Appellate Tribunal (NCLAT), with two separate petitions seeking a review of the judgement. Torrent argues that due process was not followed, while Vantage says that their offer was better than Sarda.
Chhattisgarh-based SKS went through an intense takeover battle for over two years as it operates a rare working 600-MW power plant available for sale, with 25 years of fuel agreement accompanying a railway line.
Besides Sarda, Delhi-based Jindal Power, Gujarat-based Torrent Power and
