NCLT Hyderabad Approves Resolution Plan For GVK Power (Goindwal Sahib) Ltd., A GVK Group Company
Pallavi Mishra
12 Jan 2024 9:30 AM GMT
The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. N. Venkata Ramakrishna Badarinath (Judicial Member) and Shri Charan Singh (Technical Member), has approved the Resolution Plan submitted by Punjab State Power Corporation Limited for GVK Power (Goindwal Sahib) Limited, which is a part of GVK Group promoted by Mr. Gunupati Venkata...
The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. N. Venkata Ramakrishna Badarinath (Judicial Member) and Shri Charan Singh (Technical Member), has approved the Resolution Plan submitted by Punjab State Power Corporation Limited for GVK Power (Goindwal Sahib) Limited, which is a part of GVK Group promoted by Mr. Gunupati Venkata Krishna Reddy.
The Resolution Plan is valued at Rs. 1,080 Crores, while the total admitted claims of the Corporate Debtor amounts to Rs. 6,615.48 Crores.
Background Facts
GVK Power (Goindwal Sahib) Ltd. (“Corporate Debtor/”) is engaged in coal based thermal power generation through its plant based at Goindwal Sahib in Punjab. The plant of 540 MW capacity is currently supplying electricity to the state of Punjab.
On 10.10.2022, the NCLT admitted the Corporate Debtor into Corporate Insolvency Resolution Process (“CIRP”).
The Punjab State Power Corporation Limited (“Successful Resolution Applicant/SRA”) is engaged in the business of power generation in Punjab, through its thermal and hydel power stations. The SRA is responsible for distribution and retail supply of power within Punjab to approximately 1 Crore consumers.
The SRA submitted Resolution Plan for the Corporate Debtor, which was approved by the Committee of Creditors (“CoC”) with 100% voting share.
Accordingly, the Resolution Professional filed an application under Section 30(6) of IBC before the NCLT, seeking approval of the SRA's Resolution Plan.
Outlay Of The Resolution Plan
The average liquidation value of the Corporate Debtor is Rs. 1,347.97 Crores. The claims submitted by the Corporate Debtor's creditors were admitted by the Resolution Professional to the extent of Rs. 6,615.48 Crores. The Resolution Plan of SRA is valued at Rs. 1,080 Crores, excluding the CIRP Cost.
The resolution plan proposes to pay the Secured Financial Creditors an amount of Rs. 1,077.94 Crores against an admitted claim of Rs. 6,584.68 Crores. There were no claims from Unsecured Financial Creditor or Government.
Apart from total resolution amount, the assenting financial creditors lenders would also be given a share from surplus cash, recoveries of company from avoidance applications and recoveries made by company from Coal Compensation Disputes.
The claims of Employees and Workmen have been paid in full. The Operational Creditors have been paid Rs. 2.06 Crores against their admitted claim of Rs. 30.80 Crores.
NCLT Verdict
The Bench has approved the Resolution Plan of Punjab State Power Corporation Limited for the Corporate Debtor.
Case Title: Axis Bank Limited v GVK Power (Goindwal Sahib) Ltd
Case No.: CP No. (IB) 43/7/HDB/2020
Counsel for Applicant: Shri Vivek Reddy, Senior Advocate assisted by Shri Amir Bavani, Shri Siddharth Srivastava and Mohit Kishore, Advocates.
