India’s National Company Law Tribunal (NCLT) on Friday approved Dickey Alternative Investment Trust and Adani Power Limited’s ₹3,335.52 crore (excluding resolution process cost) resolution plan for bankrupt Coastal Energen Private Limited, which owns and operates an imported coal-based thermal power plant at Tuticorin, Tamil Nadu. As per the resolution plan approved by NCLT Chennai, secured lenders of Coastal Energen will get about ₹3,330 crore, which is 28.52% of the admitted claims of about ₹11,677 crore.
The consortium has incorporated a special purpose vehicle (SPV) Moxie Power Generation Limited for implementation of the resolution plan. In February, the Dickey Alternative Investment Trust and Adani Power Limited received approval from Competition Commission of India for acquiring the entire stake in Coastal Energen Private Limited in the ratio of 51:49. NCLT admitted Coastal Energen for the corporate insolvency resolution process via an order dated 04.02.2022, following a case filed by State Bank of India and appointed Radhakrishnan Dharmarajan as the resolution professional. Mr. Radhakrishnan Dharmarajan had filed a application before NCLT seeking nod for the resolution plan which was approved by Coastal Energen Committee of Creditors with 97.80% voting share
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