The agreement includes:
- Conciliation agreementReliance Power, along with Rosa Power Supply Company, VIPL and CFM Asset Reconstruction Private Limited, has entered into an agreement to settle the outstanding debt.
- Deed of releaseA release agreement has been executed with Axis Trustee Services, releasing Reliance Power from obligations relating to VIPL’s external commercial borrowings (ECB).
- Withdrawal from legal proceedings:All legal actions initiated by and against Reliance Power, including those under the Insolvency and Bankruptcy Code (IBC), have been withdrawn.
- Share Commitment:A pledge of 92.60% of VIPL shares has been established as collateral for the lenders.
The move follows a Bloomberg report last year that claimed Gautam Adani allegedly… considering a bid for coal-fired power plants, including a 600-megawatt generating facility in central India operated by Vidarbha Industries Power in an auction conducted by a bankruptcy court.
The possible auction of Vidarbha Industries Power could further undermine the financial empire of once-billionaire Anil Ambani, who has faced lengthy battles with creditors and a high-profile succession dispute with his elder brother, Mukesh Ambani, Asia’s richest man.
Reliance Power shares rose 1% to close at ₹31.41 on NSE on Tuesday.
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