HomeBusinessResurgent Power acquires South East UP Power Transmission Company via insolvency process

Resurgent Power acquires South East UP Power Transmission Company via insolvency process


As per the decision plan, the transaction entailed fee for one-time settlement of excellent debt and buy of fairness shares for a consideration of ₹3,251 crore and payout of present money stability of SEUPPTCL

As per the decision plan, the transaction entailed fee for one-time settlement of excellent debt and buy of fairness shares for a consideration of ₹3,251 crore and payout of present money stability of SEUPPTCL

Resurgent Energy Ventures on Saturday stated that it has accomplished the acquisition of South East UP Energy Transmission Firm via an insolvency course of.

As per the decision plan, the transaction entailed fee for one-time settlement of excellent debt and buy of fairness shares for a consideration of ₹3,251 crore and payout of present money stability of SEUPPTCL.

The transaction has been funded via a mixture of shareholder funds introduced in by Resurgent Energy and loans raised from State Financial institution of India.

“Pursuant to the Letter of Intent (LOI) issued by the decision skilled of South East UP Energy Transmission Firm Restricted (SEUPPTCL) and approval of the decision plan by Nationwide Firm Regulation Tribunal, Allahabad (NCLT) vide order dated June 15, 2022, Resurgent Energy Ventures Pvt. Ltd. (Resurgent Energy) has accomplished the acquisition of SEUPPTCL and has settled the debt of all present collectors as per the phrases of the decision plan,” an organization assertion stated.

The transaction was a part of a confused asset decision course of run by the decision skilled beneath the supervision of its Committee of Collectors via a aggressive bidding course of beneath the Insolvency and Chapter Code, 2016.  

SEUPPTCL was integrated as a particular objective automobile shaped by UP Energy Transmission Firm Restricted (UPPTCL) on September 11, 2009 to implement and function the required intra-state transmission system for 35 years beneath the public-private partnership mannequin on Construct-Personal-Function-Keep & Switch (BOOT) foundation.

Pursuant to implementation of the decision plan, SEUPPTCL has turn out to be a wholly-owned subsidiary of Resurgent Energy.

SEUPPTCL has round 1,500 kilometres of transmission line (765 kV and 400 kV) and 5 sub-stations. About 900 kilometres of transmission hyperlink beneath the undertaking continues to be to be accomplished.

As soon as the transmission undertaking is accomplished, the whole enterprise worth can be about ₹6,500 crore.  Resurgent Energy — a three way partnership primarily based out of Singapore– is co-sponsored by Tata Energy and ICICI Enterprise and it has different world reputed establishments as buyers.

It was set as much as purchase confused property within the Indian energy sector. Tata Energy Worldwide Pte. Ltd. (TPIPL), a wholly-owned subsidiary of Tata Energy, owns 26% stake in Resurgent Energy. ICICI Financial institution Ltd. (ICICI Financial institution) owns 10% stake in Resurgent Energy and the stability 64% is owned by the opposite world buyers.

Resurgent Energy owns 75.01% stake in Prayagraj Energy Era Firm Restricted, which owns and operates a 1,980 MW supercritical energy plant in Uttar Pradesh.

Praveer Sinha, CEO & MD, Tata Energy, stated: “In step with our aspiration to develop our transmission enterprise, Tata Energy has partnered with ICICI and different world buyers in Resurgent Energy, that had bid for buying SEUPPTCL beneath Company Insolvency Decision Course of.

“We’re delighted to have accomplished the acquisition, permitting all collectors to maximise the restoration from this undertaking. This asset suits our total technique to maximise shareholder worth via development and sound investments. After profitable turnaround of Prayagraj Energy and acquisition of NRSS XXXVI, this asset will add additional worth to and diversify the Resurgent Energy portfolio.”

In a separate assertion on the acquisition, state-owned Energy Finance Company (PFC) stated that it has efficiently resolved the nation’s largest confused asset within the energy transmission sector of South East UP Energy Transmission Firm Restricted.

PFC was the lead monetary establishment for the undertaking, with REC and Financial institution of India as co-lenders within the consortium.

It is a landmark decision via the Company Insolvency Decision Course of (CIRP) beneath the IBC (2016), which has resulted in lenders recovering in extra of 100% of the principal quantity, it said.

The undertaking was initially allotted by Uttar Pradesh Energy Transmission Firm Restricted on BOOT foundation to Isolux Corsan Concessions SA of Spain in 2011, PFC stated, including that the undertaking has now been handed over to Resurgent Energy Ventures after receipt of the upfront fee on September 16, 2022.



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