NCLT Approves Acquisition of SKS Power Generation by Sarda Energy & Minerals

In a significant development, the Mumbai bench of the National Company Law Tribunal (NCLT) has approved the acquisition of SKS Power Generation (Chattisgarh) Ltd by BSE-listed Sarda Energy & Minerals. The division bench, comprising judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh, gave its nod to Sarda Energy & Minerals‘ resolution plan in an oral order.

The company, which had admitted liabilities exceeding Rs 2,697 crore, was successfully acquired by Sarda Energy & Minerals for approximately Rs 2,000 crore. The resolution plan was approved despite competing bids from other prominent players such as Torrent Group, Vantage Point Asset Management, and Jindal Power.

SKS Power Generation (Chattisgarh) Ltd, a coal-based thermal power plant located in Raigarh District, Chhattisgarh, has been undergoing the Corporate Insolvency Resolution Process (CIRP) since April 2022, initiated by its lender, Bank of Baroda. The plant’s strategic location and 25-year fuel agreement made it a highly sought-after asset in the power sector.

The resolution process was overseen by Ashish Rathi, the resolution professional appointed to manage the company’s affairs. Sarda Energy & Minerals was represented by the law firm Chandhiok & Mahajan, while Trilegal and Cyril Amarchand Mangaldas represented the resolution professional and the Committee of Creditors (CoC), respectively. BoB Capital Markets acted as the process advisor to both the CoC and RP.

With the approval of the resolution plan, Sarda Energy & Minerals will now proceed to implement its plans for the acquired company. The thermal power project, comprising 4X300 MW capacity power generating units, offers significant potential for growth and expansion. Ashish Pyasi, partner at Aendri Legal, noted that the implementation and monitoring phase will commence following the approval of the resolution plan.

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