Norwegian firm acquires Lanco Mandakini Hydro Energy; fully pays financial creditors
Norwegian power company Statkraft IH Holding AS, a 100% subsidiary of Statkraft AS, has got a go-ahead from the National Company Law Tribunal (NCLT) to acquire Lanco Mandakini Hydro Energy Pvt. Ltd after the tribunal approved the resolution plan submitted by the Norwegian entity. As part of its resolution plan, Statkraft IH Holding AS is fully paying the financial creditors claim of Rs 1,311 crore.
Insolvency proceedings against Lanco Mandakini Hydro Energy, one of the hydropower subsidiaries of Lanco Infratech, started in June 2020 after it defaulted on a payment of Rs 149 crore due to Axis Bank. The company owed a total of Rs 1,314 crore to all its creditors including employees and workmen.
The resolution plan of Statkraft IH Holding AS was earlier passed by the CoC by a 100% voteshare.
Key features of the resolution plan
| Types of debts | Resolution Amount (Rs cr) | Payment Terms |
| CIRP Cost | 27.8 | Within 90 days from the date of approval. |
| Financial Creditors | 1,311 | Within 90 days from the date of approval. |
| Operational creditors (Trade payables) | NIL | NA |
| Workmen/Employee | 0.15 | Within 90 days from the date of approval. |
| Pre-CIRP Dues for Workmen & Employees including termination/retirement benefits | 0.65 | Within 90 days from the date of approval. |
The resolution applicant — Statkraft IH Holding AS — proposes to invest the Upfront Capital Contribution — an amount of Rs 180 crore in Lanco Mandakini Hydro Energy, within 90 days of approval of the resolution plan by the NCLT for meeting the payment towards CIRP costs, outstanding workmen and employee dues, upfront payment to the financial creditors and other stakeholders.
Equity shares and/or quasi equity instruments will be issued by the company to the Resolution Applicant against the investment of the upfront capital contribution. An undertaking from the resolution applicant to the effect that it has the necessary financial resources available for supporting the resolution plan.
Also see: Salient features of resolution plan OCL Iron and Steel
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