Adani Power makes a second offer for Lanco Amarkantak Power

11 Dec 2023 , 09:41 AM

According to news reports, Adani Power made lenders of Lanco Amarkantak Power, a thermal power business facing bankruptcy, an upgraded and amended offer worth Rs 4,100 crore.

According to the reports, Adani Power has made two better offers in as many weeks, suggesting that it is prepared to go above and beyond to persuade financiers to buy the struggling power firm.

The business made an offer of Rs 3,650 crore, as ET stated on November 2. Roughly ten to eleven months have passed since 95% of lenders approved a proposal put forth by the consortium led by Power Finance Corp (PFC).

‘Yet, Adani Power has a chance because the National Company Law Tribunal (NCLT) has not endorsed PFC led consortium’s Rs 3,020 crore resolution plan,’ the report in question stated.

‘However, it can be difficult because the consortium of the winning bidder also includes two debtholders. The consortium members PFC and REC collectively own 41% of the debt in Lanco Amarkantak, hence Adani needs their approval,’ the report continued.

It is not prohibited by the Insolvency and Bankruptcy Code (IBC) for debtholders to bid for a company. Anybody with more than 34% debt has the ability to thwart a resolution; on the other hand, a plan is accepted if 66% of lenders concur.

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