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Lenders to SKS Power’s 1,200 MW Chhattisgarh thermal power project have zeroed in on an offer from Agritrade Resources, Singapore, to settle ₹4,892 crore of dues through the one-time settlement route.
“The consortium of lenders is led by State Bank of India. The other lenders in the consortium are L&T Financial Services and PTC Financial Services. This could be the first power sector asset to be resolved through a one-time settlement offer. The lenders have agreed to take a haircut of almost 54 per cent,” a representative of one of the lenders told BusinessLine .
Till now, Jaypee Power Ventures’ Bara power plant, Prayagraj Power Generation Co Ltd (PPGCL), was touted to be the first power project to be resolved after the February 12 RBI circular. But the bidders for that project (JSW Energy and Tata Power) continue to outbid each other, delaying the resolution.
At the end of March 31, 2018, SBI’s exposure to the SKS Power project stood at ₹4,155 crore while PTC Financial Services’ was nearly ₹340 crore. The rest was borrowed from L&T Financial Services.
“The SBI officials are meeting government officials to speed up the process. The resolution process is in the documentation stage,” the official added.
In a July 2018 statement to the Hong Kong Exchanges, the Bermuda-incorporated Agritrade Resources said: “The company was informed by the lenders that the company was selected as the recommended bidder for the acquisition of the ownership of the target company and an in-principle letter of intent was issued and entered into between the company and the lenders.”
In a February statement, Agritrade had said: “The target company is a company incorporated in India and principally engaged in the operation of a 600 MW coal fired thermal power plant in Chattisgarh, India. The Board estimates the amount of investment in the Potential Acquisition (including the value of the Power Plant) shall range between $ 525 million and $ 550 million.”
“The Target Company is in the process of constructing an additional 600 megawatt coal fired thermal power plant at the same location, and the value of the New Power Plant is estimated to be approximately $ 400 million.”
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