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Goldman, Varde consortium helps RattanIndia resolve ₹6,574 crore debt via one-time settlement

Mumbai: Distressed power producer Rattanindia Power Ltd has completed a debt resolution of 6,574 crore through a one-time settlement scheme, led by a consortium of investors including Goldman Sachs and Varde Partners.

Through the deal, the firm’s consortium of 12 lenders led by Power Finance Corp. Ltd (PFC) and State Bank of India Ltd (SBI), have agreed to take a 38% haircut against their exposure of 6,575 crore to RattanIndia Power’s 1,350 megawatt (MW) Amravati plant.

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

The one-time settlement was done through an open, global Swiss challenge auction process.

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

The power firm presently owns two coal based power plants in Maharashtra with a total capacity of 2,700MW, which includes 1,350MW each at Amravati and Nashik.

“Rattanindia Power has built world class operating plants which required a comprehensive capital structure solution. Accordingly we have been working closely with our lenders to find a solution for resolution of the financial stress. Today, therefore, achieves a big milestone in its history when we got marquee investors to join us in closing a One Time Settlement resolution with our lenders,” said Rajiv Rattan, chairman and promoter of Rattanindia Power.

Source: Livemint