Monnet Power invites bids to sell Odisha plant
1 min read . Updated: 24 Feb 2020, 09:42 AM IST
Premium- In August 2017, IDFC Bank initiated proceedings against Monnet Power under IBC
- Based on a decision by CoC, company was admitted for liquidation to NCLT in December 2018
New Delhi: Following bankruptcy proceedings last year, Monnet Power Company Limited, currently under liquidation, has invited bids for sale of its power plant in Angul, Odisha.
"Announcing sale of power plant of Monnet Power Company Limited under liquidation pursuant to National Company Law Tribunal (Mumbai Bench) order dated 23 October, 2019. Expressions of Interest towards purchase of the power plant are invited," the company said in an advertisement in a newspaper.
The Angul plant is a thermal power plant comprising two units of 525 MW capacity each.
In 2007, Monnet Power, a subsidiary of Monnet Ispat, was incorporated for setting up a thermal power plant in Odisha.
Pursuant to the directions issued by the Reserve Bank of India, in August 2017, proceedings under the Insolvency and Bankruptcy Code were instituted against the company by IDFC Bank.
Monnet Power owed around ₹6,000 crore to a consortium of lenders, including State Bank of India and Punjab National Bank.
The adjudicating authority appointed an interim resolution professional of the company through its order dated 23 February, 2018, while GT Restructuring Services LLP was appointed professional advisors to assist the resolution professional in corporate insolvency resolution process.
As there was no successful resolution, an application, based on the decision of committee of creditors, was filed for liquidation of the company in December 2018. The application for liquidation was admitted to the NCLT, according to information available on the company's website.
