In a filing to the Stock Exchange on Tuesday, Sardinian energy confirmed the payment, including ₹1,805 crore paid to SKS Power’s financial creditors, State Bank of India and BoB, as well as additional expenses of the insolvency process. It also includes excess cash in the company to be handed over to lenders. The NCLT approved the transaction on August 13, with BoB Capital acting as advisor on the process.
“The transfer was made earlier this week, well ahead of the 45-day deadline provided for in the resolution plan. Sarda has raised the majority of the funds from banks, with about 30% coming from internal accumulations,” said a person familiar with the deal.
Sarda’s rush to pay the money comes amid losing bidders Power of the torrent and Vantage Point Asset Management challenging the NCLT order in the National Court of Appeals for Company Law (NCLAT), with two separate petitions seeking review of the judgment. Torrent contends that due process was not followed, while Vantage says its offer was better than Sarda’s.
Chhattisgarh-based SKS has been in an intense takeover battle for over two years as it operates a rare 600 MW working power plant available for sale, with a 25-year fuel deal accompanying a rail line.
Besides Sarda, Delhi-based Jindal Power and Gujarat, Power of the torrent and Singapore-based Vantage Point Asset Management submitted aggressive bids with very little difference between them. After hearing opening arguments from lawyers for Torrent, Vantage Point and the creditors on Tuesday and Wednesday, the NCLAT has fixed the next hearing for August 30.
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