NEW DELHI: Anil Agarwal-led Vedanta Ltd emerged as a successful bidder for Hyderabad-based thermal power company Meenakshi Energy. The committee of creditors (CoC) has approved Vedanta’s Rs 1,440 crore resolution plan, the company said in an exchange filing.
The bid submitted by Vedanta was approved by the committee of creditors on Wednesday (January 18, 2023), and now only approval of the National Company Law Tribunal is pending. The deal will be in the form of upfront cash and secured unlisted non-convertible debentures, which will mature in five equal instalments over a period of five years.
“Out of the total consideration Rs 312 crore shall be paid upfront and balance Rs 1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to the financial creditors to be repaid in five equal instalments over a period of five years starting from the end of the second year,” said Vedanta.
Meenakshi Energy is a 1,000-MW coal-based plant at Nellore in Andhra Pradesh. It was admitted under insolvency resolution and the proceedings commenced on November 7, 2019. Vedanta envisages to operate 1,000 MW facility of Meenakshi Energy as independent power producer (IPP) to cater to market needs by entering short, medium-term power purchase agreement (PPA) and supplying power to merchants.