Adani Power Ltd. has received approval for its resolution plan to acquire insolvent Lanco Amarkantak Power Ltd.
The committee of creditors of Lanco Amarkantak, which is undergoing a corporate insolvency resolution process, has approved the resolution plan, an exchange filing said on Tuesday.
On March 4, the Adani Group company received a letter of intent from the resolution professional.
Lanco Amarkantak owns and operates a 2x300 MW thermal power plant at Pathadi village in Korba district of Chhattisgarh. The phase-1 capacity is tied up with Haryana and Madhya Pradesh distribution companies, under long-term supply pacts. The company is also setting up a 2x660 MW (1,320 MW) expansion capacity under Phase-2.
The implementation of the resolution plan is subject to terms of the LoI and requisite approvals from regulatory authorities, it said.
According to earlier reports, Reliance Industries Ltd. and a consortium led by Power Finance Corp. opted not to participate in the auction of the debt-ridden power company.
Shares of Adani Power rose as much as 0.53% before paring loss to trade 0.09% higher at 11:51 a.m., compared to a 0.36% decline in the benchmark Nifty 50.
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