Lenders of Lanco Amarkantak Power Limited decided to consider favourably an improved offer made by Adani Power Limited (NSEI:ADANIPOWER) at a meeting held on 02 November 2023, said people aware of the matter. Adani Power gave a belated revised offer of INR 36,500 million to the lenders of the thermal power company. The new offer is higher than the lender approved plan as well as an offer made by Adani Power last December.

In January this year, lenders approved a INR 30,20 million plan from a consortium led by staterun Power Finance Corporation (PFC). Adani had offered INR 29,500 million earlier. During a meeting of the committee of creditors (CoC) on 02 November 2023, Saurabh Kumar Tikmani, the resolution professional backed by KPMG, conveyed to the lenders that he has already filed an application with the bankruptcy court seeking approval for PFC?s plan.

The National Company Law Tribunal is scheduled to hear on November 7 the resolution plan given by the PFC-led consortium. It is likely that Adani Power may file a plea with the tribunal, asking it to direct the CoC to consider the revised plan since it is offering a higher value than the plan approved earlier. PFC and REC, which jointly hold 41% of the power producer?s debt and are the successful bidder for the bankrupt power company, were also in favour of Adani?s offer, one of the people said.

Edelweiss Asset Reconstruction Company, a minority debtholder with superior security, has already pleaded with the NCLT that the sale process be restarted. It has alleged that the distribution of the proceeds from the sale of the power company is against the tenets of the Insolvency and Bankruptcy Code and designed to favour creditors with inferior security holders, such as PFC and REC. Based on Edelweiss ARCs application, the court may ask the RP to restart the sale process, one of the people present in the CoC meeting said.

In January, the PFC-led consortium?s proposal secured 95% of votes, while Adani Power got 17% votes.