Home Insolvency & Bankruptcy Meenakshi Energy now a wholly-owned subsidiary of Vedanta

Meenakshi Energy now a wholly-owned subsidiary of Vedanta

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Meenakshi Energy now a wholly-owned subsidiary of Vedanta

Indian mining and metals large Vedanta Restricted has accomplished the acquisition of Meenakshi Power Restricted, a beforehand debt-ridden thermal energy firm. This marks the end result of a course of that started in January 2023 below the Company Insolvency Decision Course of (CIRP) framework.

Vedanta emerged because the profitable bidder for Meenakshi in January, providing a complete consideration of Rs. 1,440 crore. The deal concerned Vedanta buying 100% of Meenakshi’s paid-up share capital and administration management. As a part of the settlement, Vedanta has now been allotted 10 lakh (1 million) absolutely paid-up fairness shares of Rs. 10 every in Meenakshi, making it a wholly-owned subsidiary of the corporate.

This acquisition strengthens Vedanta’s presence within the energy sector, including Meenakshi’s 1,000-megawatt coal-based energy plant in Andhra Pradesh to its portfolio. Whereas the longer term operational plans for Meenakshi stay unclear, Vedanta has indicated its intention to discover choices like short-term and medium-term energy buy agreements to cater to market wants.

Earlier this 12 months, the Hyderabad bench of the Nationwide Firm Legislation Tribunal (NCLT) on 10 August authorized the decision plan submitted by Vedanta Ltd for Nellore, Andhra Pradesh-based Meenakshi Power.

The decision plan affords to pay Rs 1,440 crore to collectors of Meenakshi Power, which owes over Rs 4,625 crore to its monetary in addition to operational collectors. Of the Rs 4,625 crore, Rs 3,945 crore was monetary debt.

Out of the overall consideration Rs 312 crore will likely be paid upfront and stability Rs 1,128 crore will likely be within the type of secured unlisted non-convertible debentures issued by Meenakshi Power Restricted to the Monetary Collectors to be repaid in 5 equal instalments over a interval of 5 years ranging from the top of 2nd 12 months.

The typical liquidation worth of the belongings of Meenakshi Power has been arrived at Rs. 1,100 Crores whereas the common truthful worth arrived was Rs 2,150 crores.

The Committee of Collectors had earlier authorized the decision plan submitted by Vedanta Ltd with a vote share of 94.96%. Decision plan submitted by Vedanta Ltd was most well-liked over different two bids by Jindal Energy Restricted and Prudent ARC Restricted & Vizag Minerals and Logistics Non-public Restricted (PAL-VMML).

Additionally See: NCLT approves Vedanta’s Rs 1,440-cr decision plan for Meenakshi Power

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