NEW DELHI: Promoters of Coastal Energen have reiterated their commitment for a one-time settlement with lenders. In a press statement issued by the company promoted by Ahmed A R Buhari, it said the promoters’ earlier settlement proposal at Rs 5,847 crore is far higher than Adani’s proposal at just Rs 3,440 crore.
The company said that the total financial commitment by the promoters toward the project is Rs 7,097 crore including Rs 5,847 crore offered as settlement to banks -- Rs 2,200 crore already settled and Rs 1,259 crore equity progressively invested since 2006.
The company said in the press statement that this has been an 18-year journey of investment and the promoters are committed to a fair one-time settlement (OTS) with the consortium of banks and a fair and equitable process that allows them to manage and rebuild the plant.
In February 2022, the State Bank of India (SBI) and a 13-member banking consortium had initiated NCLT proceedings against Coastal Energen due to defaults on a loan totaling Rs 6,296 crore. The company claimed the amount had escalated from Rs 3,323 crore due to a 48-month bank funding delay amounting to Rs 2,600 crore, retrospective taxes of Rs 470 crore, and a scope increase of Rs 400 crore due to rise in capacity of the project from 1,080 MW to 1,200MW.
A sum of Rs 1,600 crore of working capital assessed by banks was also not made available to the company.