Six ARCs acquire 55% of KSK Mahanadi Power's Rs 29,330-crore debt
ARCs, have accumulated 55% of KSK Mahanadi Power's ₹29,330-crore debt from lenders in separate transactions, shows disclosure made by the stressed thermal power company's resolution professional.
The ARCs brought over ₹16,168 crore in loans in the hope that there would be demand for thermal power companies, giving them a huge upside, while lenders have exited due to over a four-year delay in its debt resolution.
In the latest deal, Prudent ARC acquired ₹156 crore of debt from Punjab & Sind Bank (PSB) at an unchallenged Swiss auction in an all-cash deal of ₹125 crore, said people with knowledge of the matter. This equated to an 80% recovery for the lender.
In February, PSB was planning to sell the same debt for ₹95 crore, equating to 57% recovery. It did not proceed with the auction and decided to fix the reserve price in context to the rising cash accumulated by KSK Mahanadi Power, people cited above said.
The company has around ₹8,500 crore in cash, which it earned in the last four years from power generation. It has three 600 MW operating units at Chhattisgarh and three other 600 MW units are under construction.
Prudent ARC already has ₹914 crore admitted claims in KSK Mahanadi Power following acquisition of debt from banks and other ARCs, shows data disclosed on the company's website.
Senior officials at Prudent ARC declined to comment.
Among ARCs, Aditya Birla ARC has largest share of 33.38% in claims from KSK Mahanadi Power, followed by ASREC (India) Ltd which has 11.98% debt share and Prudent Arc with
