A bankruptcy court has approved the plea of the resolution professional to extend the time for corporate insolvency resolution process (CIRP) at Ind-Barath Energy (Utkal), paving the way for implementing a lender-approved resolution plan by JSW Energy.

Udayraj Patwardhan, the resolution professional who had approached the Hyderabad bench of the National Company Law Tribunal (NCLT), confirmed the extension but declined to discuss the financial details of the plan. However, a person aware of the development told ET that JSW Energy offered around Rs 850 crore, a fifth higher than the withdrawn bid of Vedanta.

At the meeting of the committee of creditors (CoC) held on October 14, the lenders had decided to go ahead with the resolution plan submitted by the Sajjan Jindal-controlled JSW Group entity a week after Vedanta decided to pull out. On October 6, Vedanta had announced its decision to withdraw its resolution plan. As the withdrawal of Vedanta’s application could derail the insolvency process at Ind-Barath Energy (Utkal) and lead to its liquidation, the resolution professional convened a CoC meeting, in which the resolution plan submitted by JSW Energy was approved, with 82.7% majority.

However, the 330-day period in the CIRP had already run out, and NCLT Hyderabad was approached with an extension proposal that sought the exclusion of the time lost due to the withdrawal of Vedanta’s plan. The NCLT bench, comprising judicial member K Anantha Padmanabha Swamy and technical member Binod Kumar Sinha, ordered extending the CIRP period up to November 15.

The NCLT had on August 28, 2018 ordered initiating CIRP at Ind-Barath Energy (Utkal) after Bank of Baroda and a Macquarie Group entity MAIF Investments India moved NCLT, seeking relief against defaults by the corporate debtor. The firm owns a 700 MW under-construction coal-fired power plant near Jharsuguda in Odisha.

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