Sepco moves NCLT against Ma­hanadi over ₹5,230 cr dues

Mint ST - - NEWS - [email protected] MUMBAI

Chi­nese con­struc­tion con­trac­tor Sepco Elec­tric Power Con­struc­tion Co. has ini­ti­ated bank­ruptcy pro­ceed­ings against KSK Ma­hanadi Power Co. Ltd to re­cover around ₹5,230 crore, two peo­ple fa­mil­iar with the de­vel­op­ment said.

KSK Ma­hanadi, which op­er­ates a 3,600-megawatt (MW) pro­ject in Ch­hat­tis­garh, is among power firms that have chal­lenged a cen­tral bank cir­cu­lar on manda­tory in­sol­vency res­o­lu­tion.

“The Chi­nese en­gi­neer­ing, pro­cure­ment and con­struc­tion firm has filed a case be­fore the Hyderabad bench of the Na­tional Com­pany Law Tri­bunal (NCLT) on 27 Novem­ber and the mat­ter came up for the hear­ing on 30 Novem­ber,” first per­son aware of the de­vel­op­ment said. “Lenders com­pris­ing ap­prox­i­mately 23 banks and in­sti­tu­tions, in­clud­ing Power Fi­nance Corp. and Ru­ral En­gi­neer­ing Corp., have ap­proached the tri­bunal un­der the In­sol­vency and Bank­ruptcy Code,” the first per­son said. The bench will hear the fi­nan­cial and op­er­a­tional lenders on 19 De­cem­ber.ksk Ma­hanadi’s dues in­clude around $647.38 mil­lion in for­eign cur­rency and ₹709.50 crore, said the per­son quoted above. Out of this, the ad­mit­ted de­fault is ₹2,050 crore, which in­cludes $260.85 mil­lion and ₹249.72 crore.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.