Home / Business and Economy / JSW Energy Secures Rail Infra Firm via Insolvency
JSW Energy Secures Rail Infra Firm via Insolvency
27 Feb
Summary
- JSW Energy's Rs 700 crore revival plan for RCRIPL approved.
- Lenders to recover approximately 129% of admitted liabilities.
- NCLT greenlights acquisition through insolvency resolution process.
The National Company Law Tribunal (NCLT) has officially sanctioned JSW Energy Ltd.'s acquisition of Raigarh Champa Rail Infrastructure (RCRIPL). This acquisition was completed through the insolvency resolution process.
JSW Energy, led by Sajjan Jindal, put forth a comprehensive Rs 700 crore revival plan. This proposal addresses the company's admitted liabilities, which stood at approximately Rs 543 crore. As a result of this plan, lenders are projected to achieve a recovery of around 129%.
Prior to the NCLT's final approval, RCRIPL's secured creditors had collectively endorsed the revival strategy. The tribunal's order, dated January 21 and recently made public, stated that all crystallised and unclaimed liabilities of RCRIPL would be extinguished upon the plan's approval.
The NCLT noted JSW Group's established expertise in acquiring and revitalizing strategic assets efficiently. This integration into existing operations is known to create significant synergies and optimize costs for the acquiring entity.
JSW Energy has a history of successful acquisitions through insolvency proceedings. In March of the previous year, the company acquired KSK Mahanadi Power Company Ltd. for Rs 16,084 crore. Additionally, JSW Energy had previously acquired Ind Bharat Energy (Utkal) Ltd for Rs 1,047 crore, further demonstrating its capability in turning around distressed assets.
Currently, JSW Energy boasts a substantial operational capacity of 13,008 MW, encompassing thermal, hydro, solar, and wind power generation facilities.
