Goldman and Varde Consortium Helps RattanIndia Solve 6,574 Crore Debt Through One-Time Settlement

Bombay: Ailing electricity producer Rattanindia Power Ltd has finalized a debt resolution of ??6,574 crore through a one-time settlement program, led by a consortium of investors including Goldman Sachs and Varde Partners.

As part of the deal, the company’s consortium of 12 lenders, led by Power Finance Corp. Ltd (PFC) and State Bank of India Ltd (SBI), agreed to apply a 38% haircut on its exposure to ??6,575 crore at RattanIndia Power’s 1,350 megawatt (MW) Amravati plant.

On the total amount of the existing principal debt, ??4,050 crore will be allocated to a new set of investors and lenders which includes Goldman Sachs and Varde Partners, through Aditya Birla ARC Ltd.

One-off settlement was made through an open, global Swiss auction process.

“While most of the agreements in the electricity sector, resolved under the National Company Law Tribunal (NCLT) in the past, have been settled at ??1.2-1.5 crore per MW, this transaction was closed at ??3 crore per MW has unlocked greater and win-win value for all stakeholders, ”the company said in its statement.

The power company currently has two coal-fired power plants in Maharashtra with a total capacity of 2,700 MW, of which 1,350 MW each are in Amravati and Nashik.

“Rattanindia Power built world-class operating plants that required a complete capital structure solution. As a result, we have worked closely with our lenders to find a solution for the resolution of the financial stress. Today, therefore, we are taking an important step in its history when we have secured reputable investors to join us in reaching a single settlement resolution with our lenders, ”said Rajiv Rattan, President and Promoter of Rattanindia Power.

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