This is the first time two of the country’s largest corporate houses will be vying directly against each other for an asset. A consortium of Power Finance Corp. and
, both state-owned, will also be participating in the bidding process, the people said.
Claims of ₹14,632 cr Admitted
If RIL’s bid is successful, it will mark the company’s entry into the thermal power sector.
RIL was the highest bidder in the first round of resolution plan submissions, while Adani Power took top spot in the second round, the people said. The PFC-REC combine was third in both rounds.
In the second round, Adani made a bid of ₹2,950 crore, of which ₹1,800 crore would be an upfront payment, and the remaining ₹1,150 crore staggered over five years, said one of the persons cited above. RIL had submitted a ₹2,000 crore upfront payment plan while the PFC-REC pairing has offered ₹3,870 crore staggered over 10-12 years, the same person said.
The ₹2,950 crore offered by highest bidder Adani Power will be the base price for the November 25 auction, said one of the persons cited above.
At the 51st committee of creditors meeting, which stretched over five days, lenders decided to hold an auction to identify the highest bidder, the people cited above said.
RIL, Adani and PFC did not respond to ET’s queries.
IBC Rules for Debtholders
PFC and
jointly hold 41% of the debt in the company. Effectively, they would play the role of seller and buyer.
The Insolvency and Bankruptcy Code (IBC) guidelines do not prevent debtholders from bidding for a company undergoing corporate insolvency.
Saurabh Kumar Tikmani, the resolution professional (RP) backed by KPMG, has admitted claims to the tune of ₹14,632 crore from 17 lenders.
and SKS Power are among the other distressed assets over which RIL and Adani are likely to compete. Both have submitted expressions of interest for these two companies, although it is unclear whether either will submit a firm bid.
Offer Rejected
Lanco Amarkantak’s RP restarted the sale process of the power company in January, soon after lenders rejected a binding bid from
. The Anil Agarwal-promoted company offered nearly ₹3,000 crore to lenders, including ₹2,150 crore bonds to be paid over seven years, part payment from cash on Lanco Amarkantak’s balance sheet and some upfront payment.
Lanco operates a coal-based thermal power project on the Korba-Champa state highway in Chhattisgarh. It has commissioned the first phase, comprising two units of 300 megawatts (MW) each that supply electricity to Madhya Pradesh, Haryana and the home state.
The second phase, comprising another two units of 660 MW each, is under construction.
The construction work on the third phase, comprising two units of 660 MW each, has not yet begun, according to the company’s website.
