Power companies move HC to get more time to settle with lenders

INSUBCONTINENT EXCLUSIVE:
Essar Power, GMR Energy and RattanIndia Power have approached Allahabad HC seeking directions to RBI for extension of deadline to refer
their plants to insolvency court by 60-90 days for completing the ongoing resolution process, sources said. Lenders to these power plants
had written to the Reserve Bank of India RBI seeking extension but the apex bank did not respond even as its Feb 12 circular mandates banks
to take these plans to NCLT by Sep 11
Besides the central government and RBI, the companies have made banks party to the petitions, which were mentioned before the court on
Friday requesting hearing on Monday morning, they said.The high court had in its Aug 27 judgment said any individual having urgency can
approach the court with material facts
The court had refused interim relief to private power companies against the controversial RBI circular on stressed assets and pointed out
prevent their projects getting referred in NCLT and their matters have been listed for hearing on Monday
Punj Lloyd has also approached Delhi high court for the same purpose, the sources said.On Thursday, lenders decided to file cases for a
dozen unresolved assets to the National Company Law Tribunal (NCLT) as mandated by the central bank upon advice from their lawyers
Legal firms have advised lenders that they need to approach the central bank if they want to continue with the process of bidding for bad
assets outside the Insolvency and Bankruptcy Code (IBC). Bankers had expected to complete the bidding process for ownership change on some
projects by the time the assets get admitted in NCLT
Insolvency Code also provides for withdrawal of projects from NCLT if 90% of the lenders agree
However, power companies said getting 90% lenders on board is a difficult task
is closest to resolution with Adani Power as the highest bidder
Sources said the lead lender to the plant Axis Bank has written to RBI seeking special dispensation to the project but has not received any
response yet
Essar Power has offered a one time settlement of Rs 3,800 crore for its 1,200-mw Mahan plant in Madhya Pradesh but a deal has not been
finalised yet due to lack of consensus among lenders
Ucchpinda plant in Chhattisgarh decided to restructure debt without ownership change but a last minute glitch hurdled the process
The resolution process to ILFS Cuddalore 1200-mw plant has been stalled by an asset restructuring company that holds a small portion of the
debt. The bankers are negotiating with companies like JSW Energy, Adani Power, Resurgent Power, Edelweiss ARC and others for selling stake
in about 7-8 stressed power plants