Adani Power consortium acquires Coastal Energen for Rs 3,335 crore

The National Company Law Tribunal (NCLT) recently approved the resolution plan submitted by Dickey Alternative Investment Trust (DAIT) in consortium with Adani Power Limited for corporate insolvency resolution process (CIRP) of Coastal Energen Pvt Ltd.

Here’s the detail of the resolution plan submitted by DAIT and Adani Power:

The plan proposes upfront payment of Rs.3335.52 crores (Excluding CIRP costs amount) within a period 60 days from the date of approval of the Resolution Plan by this Tribunal. Of the Rs 3,335.52 crore, DAIT would contribute Rs 1,700 crores and Adani Power would contribute Rs 1,630.88 crore.

The Liquidation value of Coastal Energen Pvt Ltd was arrived at Rs 2,410 crore and the corresponding fair value is arrived at Rs 3,176 crores. The corporate debtor owed Rs 12,748 crore to all its creditors.

As per the resolution plan, financial creditors will receive Rs 3,335 crore, 28.52% of their total claim of 11,678 crore. Operational creditors will receive a sum of Rs 4.64 crore.  A sum of Rs 109 crore has been set aside as CIRP cost.

The resolution plan was earlier approved by the committee of creditors by 100% vote share.

The plan proposes incorporation or use of an existing Company as a Special Purpose Vehicle (SPV) — Moxie Power Generation Limited– for the implementation of the resolution plan. The consortium of DAIT and Adani Power has stated that they have commenced the process of incorporating the SPV in the form of a company under the Companies Act, 2013 in the state of Tamil Nadu with registered office at Chennai. The SPV has been incorporated on 30 January 2024 and with its registered office at Ramcon Fortuna Towers 4th, Kodambakkam High Road, Nungambakkam High Road, Chennai, Chennai- 600034.

The Adani Power led consortium has also obtained approval from Competition Commission of India (CCI) vide letter dated 13 February 2024 for the acquisition of 100% equity share capital of Coastal Energen Private Limited by DAIT and APL in the ratio of 51:49 respectively under Section 31(1) of the Competition Act, 2002.

Also Read: Adani Power given backdoor entry to bidding process, claims former promoter of Coastal Energen