Adani Power Ltd. and its consortium partners have received a letter of intent to buy Coastal Energen Pvt., which is undergoing a corporate insolvency resolution process.
The LoI from the resolution professional came on Saturday after CEPL's committee of creditors approved the resolution plan submitted by the consortium, the Adani Group company said in an exchange filing on Sunday.
The implementation of the resolution plan is subject to the terms of the LOI and requisite approvals from other authorities and regulatory agencies, APL said.
A consortium led by State Bank of India had provided loans to CEPL to establish a 1,200-megawatt thermal power project in Tamil Nadu. Due to delays and a cost overrun, the project cost shot up to Rs 7,870 crore, with a debt of Rs 6,296 crore and equity of Rs 1,574 crore. The original cost was Rs 4,297 crore, with a debt of Rs 3,323 crore.
In February 2022, the National Company Law Tribunal admitted an application by SBI against CEPL to initiate the CIRP. The company is promoted by Coal & Oil Group through Mutiara Energy Holdings Ltd., Mauritius, and Precious Energy Holdings Ltd., a Dubai-based energy conglomerate.
Earlier in October, Mutiara had offered a total settlement of Rs 5,847 crore, including 15% equity, amid reports of APL emerging as the successful bidder to buy the troubled power company.
Out of the offered settlement, Rs 2,327 crore has already been settled with the SBI-led consortium, according to CEPL.
Shares of Adani Power had closed 0.05% lower at Rs 511.80 apiece on the BSE compared with 0.34% advance in the benchmark Sensex.
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