NEW DELHI: Former promoter of Chennai-based power company Coastal Energen Pvt Ltd has moved NCLT against the resolution plan submitted by the Consortium of Dickey Alternate Investment Trust (DAIT) and Adani Power Ltd.
The plea submitted by suspended director MK Parmeshawaram in the Chennai bench of the National Company Law Tribunal (NCLT) has pointed out ‘glaring irregularities’ in the way the resolution plan was approved by the lenders. A copy of the plea is with the New Indian Express.
The Rs 3,500 crore resolution plan has been approved by lenders of Coastal Energen, and is due for approval by the NCLT.
According to the plea filed by the promoters of the power company before the NCLT, Adani Power piggy-backed Dickey Alternate Investment Trust to get a back-door entry into the bidding process after the Adani’s expression of interest (EoI) was rejected by the resolution professional (RP) for delayed submission.
As per the plea, the EoI terms required any entity submitting an EoI as a consortium to do so at the outset, submitting the required documents and annexures as a consortium and not in an individual capacity.
“This raised the questions about the legitimacy of DAIT’s involvement in a consortium with Adani Power, especially since DAIT has already submitted a resolution plan in its individual capacity, and the Adani Power’s EoI had been rejected for delayed submission,” reads the plea submitted by the former promoter.
The submission made by the promoter also highlights that there are no documented deliberations or discussions between the RP and the lenders regarding the inclusion of Adani Power as prospective resolution applicant. It also says no justifications were given for condoning the delay in submission of EoI by Adani Power.
The plea made by the ex-promoter also points fingers at the possible conflict of interest ‘undisclosed’ by the RP and the Committee of Creditors (CoC).
An Adani Power spokesperson refused to comment on the issue. It must be pointed out here that the ex-promoters of the company had offered a one-time settlement of debt with the lenders. The offer included a total payment of Rs 5,847 crore, including 15% ownership of the company to its lenders to settle its debts. Coastal Energen is promoted by Ahmed AR Buhari, and is undergoing a corporate insolvency resolution process since February 2022. The company owes Rs 2,000 crore to different lenders.