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KSK Mahanadi no longer subsidiary of KSK Energy Ventures

Press Trust of India  |  New Delhi 

today said its arm is ceased to be its subsidiary following invocation of pledged shares by a consortium of lenders upon default on repayment.

"...consequent to the invocation of pledge at KSK Mahanadi, it ceased to be subsidiary of the Company and will substantially impact the Group's business moving forward," KSK Energy Venture said in a BSE filing.

According to the statement, the lenders consortium at (KSK Mahanadi) along with lenders consortium at the water and railway infrastructure SPVs (special purpose vehicle) had issued notices of default with respect to credit facilities availed under the respective facility agreements.

The lenders had also informed about various actions required to address the default, including the invocation of equity shares of the companies pledged in favour of the lenders consortium. The company had represented their case before lenders.

Talking about the impact of this action on the company, said that KSK Mahanadi constituted over 80 per cent of the total power generation capacity of the group in the last 10 years (3,600 MW of the 4,472 MWs being operated/ developed under the company).

It said that lenders action would have adverse impact on the and its various stakeholders.

The aggregate equity investment in KSK Mahanadi is over Rs 3,600 crores, with 82.8 per cent held by the company and its subsidiaries and balance 17.2 per cent held by

These shareholding in KSK Mahanadi were pledged with lenders at KSK Mahanadi as well as lenders at the holding companies and lenders' action in this regard would seriously jeopardize its value, KSK Energy Ventures added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 16 2018. 16:15 IST