HomeBusinessResurgent Power acquires South East UP Power Transmission Company through insolvency process

Resurgent Power acquires South East UP Power Transmission Company through insolvency process

As per the resolution plan, the transaction included one-time settlement of outstanding debt and purchase of equity shares worth ₹3,251 crore and payment of existing cash balances of SEUPPTCL.

As per the resolution plan, the transaction included one-time settlement of outstanding debt and purchase of equity shares worth ₹3,251 crore and payment of existing cash balances of SEUPPTCL.

Resurgent Power Ventures on Saturday said it has completed the acquisition of South East UP Power Transmission Company through insolvency proceedings.

As per the resolution plan, the transaction involved one-time settlement of outstanding debt and purchase of equity shares for a consideration of ₹3,251 crore and payment of existing cash balances of SEUPPTCL.

The transaction has been funded through a mix of shareholder funds brought in by Resurgent Power and loans raised from State Bank of India.

“As per the Letter of Intent (LOI) issued by the Resolution Professional of the South East UP Power Transmission Company Limited (SEUPPTCL) and the approval of the Resolution Plan by the National Company Law Tribunal, Allahabad (NCLT) vide order dated 15th June, 2022, Resurgent Power Ventures Private Limited (Resurgent Power) has completed the acquisition of SEUPPTCL and has settled the debt of all existing creditors in accordance with the terms of the resolution plan,” a statement from the company said.

The transaction was part of the stressed asset resolution process under the Insolvency and Bankruptcy Code, 2016 conducted by a resolution professional under the supervision of its Committee of Creditors through a competitive bidding process.

SEUPPTCL was incorporated on September 11, 2009 as a Special Purpose Vehicle constituted by UP Power Transmission Company Limited (UPPTCL) under Public-Private Partnership model on Build-Own-Operate for 35 years in specified intra- State was to implement and operate the transmission system. -Maintenance and Transfer (BOOT) basis.

In pursuance of the implementation of the resolution plan, SEUPPTCL has become a wholly owned subsidiary of Resurgent Power.

SEUPPTCL has about 1,500 km of transmission lines (765 kV and 400 kV) and 5 sub-stations. Under the project, about 900 km of transmission link work is yet to be completed.

Once the transmission project is completed, the total enterprise value will be around ₹6,500 crore. Resurgent Power – a joint venture based out of Singapore – is co-sponsored by Tata Power and ICICI Venture and has other globally reputed institutions as investors.

It was set up to acquire stressed assets in the Indian power sector. Tata Power International Pte. Ltd. (TPIPL), a wholly owned subsidiary of Tata Power, holds a 26% stake in Resurgent Power. ICICI Bank Limited (ICICI Bank) holds 10% stake in Resurgent Power and the remaining 64% is held by other global investors.

Resurgent Power holds a 75.01% stake in Prayagraj Power Generation Company Limited, which owns and operates a 1,980 MW supercritical power plant in Uttar Pradesh.

Praveer Sinha, CEO and MD, Tata Power, said: “In line with our aspiration to expand our transmission business, Tata Power has partnered with ICICI and other global investors in Resurgent Power, which has partnered with SEUPPTCL as part of the Corporate Insolvency Resolution Process. bid to acquire.

“We are pleased to complete the acquisition, allowing all creditors to maximize recovery from this project. This asset fits into our overall strategy to maximize shareholder value through growth and strong investments. Prayagraj Power Following the successful turnaround of Rs.

In a separate statement on the acquisition, state-owned Power Finance Corporation (PFC) said it has successfully resolved the country’s biggest stressed asset in the power transmission sector of South East UP Power Transmission Company Ltd.

PFC was the lead financial institution for the project, with REC and Bank of India in the consortium as co-lenders.

This is a landmark resolution through the Corporate Insolvency Resolution Process (CIRP) under the IBC (2016), which has resulted in recovery of more than 100% of the principal amount to the lenders, it said.

The project was originally allotted on BOOT basis by Uttar Pradesh Power Transmission Company Ltd to Spain’s Isolux Corsan Concessions SA in 2011, PFC said, after receiving the advance payment on 16 September, now handing over the project to Resurgent Power Ventures. has given. , 2022.

Author
Authorhttps://searchnews.in
Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

- Advertisment -