The National Company Law Appellate Tribunal (NCLAT), Chennai on September 06, 2024, directed status quo to be maintained as on date in respect of Corporate Insolvency Resolution Process of Coastal Energen Private Limited, as an appeal was filed against the approval of resolution plan of ₹3,335.52 crore (excluding resolution process cost) submitted by Dickey Alternative Investment Trust and Adani Power Limited consortium for the company.
NCLAT Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain ordered resolution professional Radhakrishnan Dharmarajan to manage Coastal Energen plant with relevant resolution amount kept in a separate account till the date of resolution by the case.
The NCLAT has listed the case for further hearing on September 18, 2024.
It is also worth noting that such resolution comes up for consideration at a time when the DAIT and powers consortium have already operationalized the resolution tumb and takeover Coastal Energen.
Last month, the Adani Power resolution plan for Coastal Energen which owns and operates an imported coal based thermal power plant situated in Tuticorin Tamilnadu was approved by the National Company Law Tribunal NCLT Chennai. As per the approved resolution plan, secured lenders of Coastal Energen among whom AVA and others are entitled to nearly ₹3,330 crore which is 28.52% of the admitted total liability of 11677 crore Of Financial Creditor.
Also, against consent of NCLT of yes, Ahmed Buhari who was absolute director of coastal energen came with appeal in NCLAT and stated that proper procedure in selection of our consortium of Dait and Adani Power was not adhered as successful bidder under the process of insolvency.
Radhakrishna Dharamrajan was appointed by NCLT on February 4, 2022 following a corporate insolvency case against Coastal Energen after a case instituted by the State Bank of India and subsequently granted corporate moratorium protection.
