The National Company Law Appellate Tribunal (NCLAT) has ordered a status quo on Sarda Energy & Minerals Ltd (SEML)’s bid to take over SKS Power Ltd responding to the company’s plea against a lower court’s order which had asked lenders to reconsider their decision to declare SEML as the winning bidder. The next date of hearing is November 24.
State Bank of India (SBI) and IL&FS have different views on debt restructuring at ITPCL, the bankrupt financier’s power joint venture entity. SBI wants an assessment of the liquidation value before signing on the proposal, while IL&FS, as part of its resolution framework, is not obligated to undertake a liquidation assessment for this asset. Last month, lenders approved a restructuring plan for ITPCL, with 59% of its debt classified as sustainable and the remaining 41% converted into non-convertible debentures. ITPCL operates a 1,200-MW power plant in Tamil Nadu.
