Resolution professional of Essar Power Jharkhand invites bids by July 10

The resolution professional for Essar Power Jharkhand, Huzefa Fakhri Sitabkhan, has invited expressions of interest (EoIs) and resolution plans from companies by July 10. 

Essar Power Jharkhand was admitted under the Insolvency and Bankruptcy Code (IBC) for the Corporate Insolvency Resolution Process on April 5.

The company owes creditors around Rs 56.4 billion as of May 22, according to a legal document on the company’s website. 

The company has a 1,200 megawatt coal-fired independent plant at Chandwa in Jharkhand.

ICICI Bank moved the National Company Law Tribunal (NCLT) in January to recover dues of around Rs 36.26 billion. The company was declared a non-performing asset (NPA) on September 30, 2016. 

Interestingly, ICICI Bank is the only commercial bank among creditors. Others include Ideal Financing Corp, Essar Power, Essar Power Transmission Company and Edwell Metal and Trading.

Workmen and employees of Essar Power Jharkhand have filed claims worth Rs 3.52 million with the resolution professional. As on May 22, the resolution professional accepted claims worth Rs 43.87 billion. 

On April 5, the NCLT Principal Bench in New Delhi imposed a moratorium on the company, barring any party from initiating legal proceedings against the corporate debtor in other legal forums, and prohibited any transfer of the company’s assets.

Essar Power Jharkhand is a part of the Reserve Bank of India’s August 28, 2017, list of defaulting companies, which were admitted to the NCLT for insolvency proceedings.