Resurgent Power acquires South East UP Power Transmission Company
The resurgent energy companies, in which Tata Power has a 26% stake, announced on Saturday that it had completed the acquisition of South East UP Power Transmission Company through insolvency proceedings.
In accordance with the resolution plan, the transaction involved the payment of a one-time settlement of the unpaid debt and the purchase of equity shares for a consideration of Rs 3,251 crore and the payment of the existing cash balance of SEUPPTCL.
The transaction was financed by a combination of shareholder funds contributed by Resurgent Power and loans raised from the State Bank of India.
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“In accordance with the Letter of Intent (LOI) issued by the resolution professional of South East UP Power Transmission Company Limited (SEUPPTCL) and the approval of the resolution plan by the National Company Law Tribunal, Allahabad (NCLT) see order dated June 15, 2022, Resurgent Power Ventures Pvt Ltd (Resurgent Power) has completed the acquisition of SEUPPTCL and has settled the debt of all existing creditors in accordance with the terms of the resolution plan,” a statement from the company reads.
The transaction was part of a distressed asset resolution process managed by the resolution professional under the supervision of its creditors’ committee through a tender process under the Code of insolvency and bankruptcy of 2016.
SEUPPTCL was incorporated as a Special Purpose Vehicle formed by UP Power Transmission Company Limited (UPPTCL) on September 11, 2009 to implement and operate the specified intrastate transmission system for 35 years under the public partnership model -private on Build-Own-Operate -Maintenance and Transfer (BOOT) database.