Latest news with #VIPL
India.com
4 hours ago
- Business
- India.com
Big move by Gautam Adani, acquires this former company of Anil Ambani, its name is…
Adani Power Ltd has moved forward in the process of acquiring the bankrupt Vidarbha Industries Power Ltd. It is a former subsidiary of Anil Ambani led Reliance Power Ltd. The National Company Law Tribunal on 18 June approved Adani Power's Rs 4,000 crore resolution plan to acquire VIPL. A majority nod was given by secured creditors in February. Adani Power will pay Rs 4,000 crore to acquire the company. Vidarbha Industries owns a 600-megawatt thermal power plant in Nagpur. The resolution plan received 100% voting share. The tribunal also found this plan suitable for revival. Vidarbha Industries Power Current Situation The company has admitted liabilities of Rs 6,753 crore, and the successful resolution plan has proposed to pay Rs 4,000 crore to acquire the company. 'We find that the Resolution Plan has been approved with 100% voting share. As per the CoC, the plan meets the requirement of being viable and feasible for the revival of the Corporate Debtor,' said the division bench of judicial member Nilesh Sharma and a technical member, Sameer Kakar, in its 75-page order. 'We also observe that none of the stakeholders in the process of CIRP have come forward before this Tribunal with an application objecting to the approval of this Resolution Plan,' added the tribunal. The tribunal also observed that the resolution plan is binding on the Corporate Debtor (VIPL), its employees, members, creditors, guarantors and other stakeholders. VIPL Anil Ambani Connection VIPL was earlier a subsidiary of Anil Ambani-owned Reliance Power. It declard insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). Reliance Power had announced last year that VIPL was no longer its subsidiary. Bimal Kumar Agarwal was appointed by the bench for the interim resolution professional (IRP) to look after the insolvency process. This also includes managing VIPL's assets and inviting resolution plans.
Mint
6 hours ago
- Business
- Mint
Adani Power adds Reliance Power's former unit to its string of acquisitions
Next Story Krishna Yadav NCLT has approved Adani Power's ₹ 4,000 crore resolution plan to acquire Vidarbha Industries Power Ltd. Adani Power is looking to increase its power-generating capacity to 30.67 GW by 2030 from 17.55 GW now, making it India's largest private sector capacity expansion. (Reuters) Gift this article Adani Power Ltd has inched closer to acquiring the bankrupt Vidarbha Industries Power Ltd, a former subsidiary of Reliance Power Ltd, adding to a list of distressed but strategically located power assets as it strives towards its goal. Adani Power Ltd has inched closer to acquiring the bankrupt Vidarbha Industries Power Ltd, a former subsidiary of Reliance Power Ltd, adding to a list of distressed but strategically located power assets as it strives towards its goal. The National Company Law Tribunal on 18 June approved Adani Power's ₹ 4,000 crore resolution plan to acquire VIPL following a majority nod in February by the distressed company's committee of creditors. Adani Power aims to increase its 17.55 GW of power-generating capacity—including thermal plants across states and a 40 MW solar project in Gujarat—to 30.67 GW by 2030, making it the largest private sector capacity expansion in the country. With its latest acquisition, Adani Power will gain control of VIPL's 600 MW thermal power plant in Butibori, Nagpur, comprising two 300 MW units. The plant has a long-term power purchase agreement with the Maharashtra government for 308.5 MW, ensuring stable cash flows and potential for future scale-up. The VIPL deal follows Adani's recent acquisitions of Dahanu Power ( ₹ 815 crore), Lanco Amarkantak Power, and Coastal Energen ( ₹ 3,330.88 crore), underscoring the group's strategy to drive growth. On Thursday, 19 June, Adani Power shares fell 3.2% to ₹ 533.20 each on NSE, while the Nifty 50 held steady, shedding just 18.80 points amid geopolitical tensions because of the escalating Israel-Iran conflict. VIPL's insolvency Vidarbha Industries Power was admitted into insolvency in September 2024 after CFM Asset Reconstruction moved the tribunal under the Insolvency and Bankruptcy Code (IBC). On 24 February this year, Adani Power informed stock exchanges that VIPL's lenders had approved its revival plan, subject to the terms of the letter of intent and necessary regulatory approvals. Adani Power had emerged as the successful resolution applicant after a competitive process that attracted bids from several major players, including Capri Global Holdings, CESC Ltd, Hindustan Thermal Projects, Jindal Power, JSW Energy, NTPC Ltd, Orissa Metaliks, Vedanta Ltd, and Shriniwas Spintex Industries. Under the approved plan, Adani Power will pay ₹ 4,000 crore against total admitted liabilities of ₹ 6,753 crore. The Adani entity has been directed to complete the payment within the stipulated timeframe. 'The Resolution Applicant is directed to make payment of the entire Resolution Plan amount within the time period stipulated under the Resolution Plan, failing which the entire amount paid shall stand forfeited," a Mumbai bench of the NCLT said in its 18 June order. As per the plan, the funding will be arranged through internal accruals or financing by eligible affiliates, with the flexibility to raise capital via equity, debt, preference shares, or external commercial borrowings. Reliance Power's exit VIPL was originally established as a special-purpose vehicle by Reliance Power to develop a 600 MW thermal power plant in Butibori, Nagpur, under a concession from the Maharashtra Industrial Development Corporation. The project was later converted into an independent power project. In September 2024, Reliance Power announced that VIPL was no longer its subsidiary after settling ₹ 3,872 crore in corporate guarantees extended on its behalf. As part of the settlement with CFM Asset Reconstruction, all associated obligations were released and 100% of VIPL's shares were pledged in favour of CFM. VIPL had defaulted on loans from Axis Bank and State Bank of India, which were later acquired by CFM ARC. Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Mint
9 hours ago
- Business
- Mint
Adani Power adds Reliance Power's former unit to its string to acquisitions
Adani Power Ltd has inched closer to acquiring the bankrupt Vidarbha Industries Power Ltd, a former subsidiary of Reliance Power Ltd, adding to a list of distressed but strategically located power assets as it strives towards its goal. The National Company Law Tribunal on 18 June approved Adani Power's ₹4,000 crore resolution plan to acquire VIPL following a majority nod in February by the distressed company's committee of creditors. Adani Power aims to increase its 17.55 GW of power-generating capacity—including thermal plants across states and a 40 MW solar project in Gujarat—to 30.67 GW by 2030, making it the largest private sector capacity expansion in the country. With its latest acquisition, Adani Power will gain control of VIPL's 600 MW thermal power plant in Butibori, Nagpur, comprising two 300 MW units. The plant has a long-term power purchase agreement with the Maharashtra government for 308.5 MW, ensuring stable cash flows and potential for future scale-up. The VIPL deal follows Adani's recent acquisitions of Dahanu Power ( ₹815 crore), Lanco Amarkantak Power, and Coastal Energen ( ₹3,330.88 crore), underscoring the group's strategy to drive growth. On Thursday, 19 June, Adani Power shares fell 3.2% to ₹533.20 each on NSE, while the Nifty 50 held steady, shedding just 18.80 points amid geopolitical tensions because of the escalating Israel-Iran conflict. Also read | Adani Group to raise ₹2.5 trillion over five years to fund capex VIPL's insolvency Vidarbha Industries Power was admitted into insolvency in September 2024 after CFM Asset Reconstruction moved the tribunal under the Insolvency and Bankruptcy Code (IBC). On 24 February this year, Adani Power informed stock exchanges that VIPL's lenders had approved its revival plan, subject to the terms of the letter of intent and necessary regulatory approvals. Adani Power had emerged as the successful resolution applicant after a competitive process that attracted bids from several major players, including Capri Global Holdings, CESC Ltd, Hindustan Thermal Projects, Jindal Power, JSW Energy, NTPC Ltd, Orissa Metaliks, Vedanta Ltd, and Shriniwas Spintex Industries. Under the approved plan, Adani Power will pay ₹4,000 crore against total admitted liabilities of ₹6,753 crore. The Adani entity has been directed to complete the payment within the stipulated timeframe. 'The Resolution Applicant is directed to make payment of the entire Resolution Plan amount within the time period stipulated under the Resolution Plan, failing which the entire amount paid shall stand forfeited," a Mumbai bench of the NCLT said in its 18 June order. As per the plan, the funding will be arranged through internal accruals or financing by eligible affiliates, with the flexibility to raise capital via equity, debt, preference shares, or external commercial borrowings. Also read | Adani, Reliance among participants in NPCIL's small nuclear reactor project Reliance Power's exit VIPL was originally established as a special-purpose vehicle by Reliance Power to develop a 600 MW thermal power plant in Butibori, Nagpur, under a concession from the Maharashtra Industrial Development Corporation. The project was later converted into an independent power project. In September 2024, Reliance Power announced that VIPL was no longer its subsidiary after settling ₹3,872 crore in corporate guarantees extended on its behalf. As part of the settlement with CFM Asset Reconstruction, all associated obligations were released and 100% of VIPL's shares were pledged in favour of CFM. VIPL had defaulted on loans from Axis Bank and State Bank of India, which were later acquired by CFM ARC. Also read | Is the Israel-Iran war a billion-dollar threat to Adani Ports & SEZ?
Time of India
11 hours ago
- Business
- Time of India
Adani Power's proposal to acquire Vidarbha Industries Power's approved by NCLT
The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday approved Adani Power Ltd 's acquisition of Vidarbha Industries Power Ltd. Before the tribunal's nod, the secured creditors of the company approved the plan in February 2024. The company has admitted liabilities of Rs 6,753 crore, and the successful resolution plan has proposed to pay Rs 4,000 crore to acquire the company. Vidarbha Industries (VIPL) owns and operates a 600-megawatt (MW) thermal power plant, with two 300-MW units each in Nagpur in Maharashtra state. 'We find that the Resolution Plan has been approved with 100% voting share. As per the CoC, the plan meets the requirement of being viable and feasible for the revival of the Corporate Debtor,' said the division bench of judicial member Nilesh Sharma and a technical member, Sameer Kakar, in its 75-page order. 'We also observe that none of the stakeholders in the process of CIRP have come forward before this Tribunal with an application objecting to the approval of this Resolution Plan,' noted the tribunal. The tribunal also observed that the resolution plan is binding on the Corporate Debtor (VIPL), its employees, members, creditors, guarantors and other stakeholders. Last year in September, the tribunal had admitted CFM Asset Reconstruction's application to admit the company under the Corporate Insolvency Resolution Process (CIRP). On February 24, Adani Power in its stock exchange filing had said that the lenders have approved its revival plan for the company and the 'implementation of the resolution plan' is subject to the 'LOI terms as well as requisite approvals from the NCLT and other regulatory approvals'. VIPL was formerly a subsidiary of Anil Ambani-owned Reliance Power . It entered insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). Reliance Power had announced last year that VIPL was no longer its subsidiary. Admitting the petition, the bench appointed Bimal Kumar Agarwal as the interim resolution professional (IRP) to oversee the insolvency process, including managing VIPL's assets and inviting resolution plans. VIPL, a special-purpose vehicle, was set up by Reliance Power for building a coal-based thermal power plant comprising two units of 300 MW each at Butibori at Nagpur in Maharashtra. The project was awarded after an international bidding process run by the Maharashtra Industrial Development Corporation, and it was eventually converted into an independent power project. The Butibori project has a long-term power purchase agreement (PPA) with Maharashtra for 3085 MW, with potential for expansion. The company defaulted on loans totalling Rs. 3,872 crore to Axis Bank and State Bank of India (SBI), leading to the classification of its account as a non-performing asset in 2019. Both lenders later sold their debts to CFM ARC in 2023, as reported by ET in October 2023.
Time of India
12 hours ago
- Business
- Time of India
Adani Power's proposal to acquire Vidarbha Industries Power's approved by NCLT
The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday approved Adani Power Ltd 's acquisition of Vidarbha Industries Power Ltd. Before the tribunal's nod, the secured creditors of the company approved the plan in February 2024. The company has admitted liabilities of Rs 6,753 crore, and the successful resolution plan has proposed to pay Rs 4,000 crore to acquire the company. Vidarbha Industries (VIPL) owns and operates a 600-megawatt (MW) thermal power plant, with two 300-MW units each in Nagpur in Maharashtra state. 'We find that the Resolution Plan has been approved with 100% voting share. As per the CoC, the plan meets the requirement of being viable and feasible for the revival of the Corporate Debtor,' said the division bench of judicial member Nilesh Sharma and a technical member, Sameer Kakar, in its 75-page order. 'We also observe that none of the stakeholders in the process of CIRP have come forward before this Tribunal with an application objecting to the approval of this Resolution Plan,' noted the tribunal. The tribunal also observed that the resolution plan is binding on the Corporate Debtor (VIPL), its employees, members, creditors, guarantors and other stakeholders. Last year in September, the tribunal had admitted CFM Asset Reconstruction's application to admit the company under the Corporate Insolvency Resolution Process (CIRP). On February 24, Adani Power in its stock exchange filing had said that the lenders have approved its revival plan for the company and the 'implementation of the resolution plan' is subject to the 'LOI terms as well as requisite approvals from the NCLT and other regulatory approvals'. VIPL was formerly a subsidiary of Anil Ambani-owned Reliance Power. It entered insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). Reliance Power had announced last year that VIPL was no longer its subsidiary. Admitting the petition, the bench appointed Bimal Kumar Agarwal as the interim resolution professional (IRP) to oversee the insolvency process, including managing VIPL's assets and inviting resolution plans. VIPL, a special-purpose vehicle, was set up by Reliance Power for building a coal-based thermal power plant comprising two units of 300 MW each at Butibori at Nagpur in Maharashtra. The project was awarded after an international bidding process run by the Maharashtra Industrial Development Corporation, and it was eventually converted into an independent power project. The Butibori project has a long-term power purchase agreement (PPA) with Maharashtra for 3085 MW, with potential for expansion. The company defaulted on loans totalling Rs. 3,872 crore to Axis Bank and State Bank of India (SBI), leading to the classification of its account as a non-performing asset in 2019. Both lenders later sold their debts to CFM ARC in 2023, as reported by ET in October 2023.
