Informist, Wednesday, Sep 11, 2024

--Adani Power consortium moves SC vs stay on plan for Coastal Energen

--CONTEXT: NCLAT ordered status quo on IBC plan for Coastal Energen

--SC to hear Adani Power consortium plea in Coastal Energen case Thu

NEW DELHI – A consortium of Dickey Alternative Investment Trust and Adani Power Ltd today moved the Supreme Court against the National Company Law Appellate Tribunal's order of status quo on implementation of the consortium's resolution plan for debt-ridden Coastal Energen Pvt Ltd. On Friday, the appellate tribunal had observed that prima facie, due process was not followed in the case and members of the consortium should not be allowed to make any gains.

Appearing for the consortium, advocate Abhishek Manu Singhvi today mentioned the case to a Bench led by Chief Justice of India D.Y. Chandrachud for urgent listing. Chief Justice Chandrachud placed the case for hearing on Thursday.

The appellate tribunal bench of judicial member Sharad Kumar Sharma and technical member Jatindranath Swain had said that the interim resolution professional would continue to run Coastal Energen's power plant in Thootukudi, Tamil Nadu, until Sep 18, the next date of hearing. Any money generated during this period would be kept in an escrow account, the tribunal had said.

It was hearing a batch of appeals by Ahmed Burari, the suspended director of Coastal Energen, and Precious Energy Holdings and Mutiara Energy Holdings, the two shareholders of the company. The appeal arose after the Chennai bench of the National Company Law Tribunal approved Dickey Alternative Investment Trust and Adani Power's resolution plan for Coastal Energen.

Dickey Alternative Investment Trust, a Mudhra Fund, is the lead member holding 51% interest in the consortium and Adani Power holds 49%. The value of the resolution plan is 33.31 bln rupees. The debt outstanding of Coastal Energen is about 118.51 bln rupees. Coastal Energen owns and operates a 1,200 MW thermal power plant in Tuticorin. The plant currently supplies net 558 MW to Tamil Nadu Generation and Distribution Corp Ltd, the state's distribution company, under a long-term power purchase agreement.

At 1151 IST, shares of Adani Power Ltd were flat at 637.30 rupees on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Surya Tripathi

Edited by Avishek Dutta

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