SKS Power lenders to review Torrent's resolution proposal next week
SKS Power will meet next week to review the resolution plan offered by Torrent Power following a directive by the bankruptcy court, which observed that the decision by the lenders to sell the power company to Sarda Energy and Minerals was based on incomplete financial data, said people with knowledge of the matter. Lenders of bankrupt SKS Power unanimously voted on May 16 in favour of a plan given the stock exchange listed Sarda Energy.
Torrent Power, Jindal Power Ltd and Vantage Point Asset Management were also in the fray for the same power producer.
The division bench comprising Prabhat Kumar and Kishore Vemulapalli, in their order stated, «This Bench takes note of legal proposition that the Adjudicating Authority cannot interfere with the commercial wisdom of Committee of Creditors (CoC), however, this bench feels that the decision taken by CoC is on the basis of incomplete financial data placed before it.»
The court held that such a decision-making process by the legal advisor, process advisor and resolution professional makes such a decision-making process 'perverse and amenable to interference by this bench.'
In its appeal, Torrent has stated that it had offered ₹2,000 crore as upfront cash payment while Sarda offer was ₹2,005 crore, which included ₹400 crore as deferred payment.
