The Adani Power and Dickey Alternative Investment Trust consortium will be approaching the Supreme Court this week to contest the National Company Law Appellate Tribunal's (NCLAT) recent order which upholds the status quo in the Corporate Insolvency Resolution Process (CIRP) of Coastal Energen Private Limited.
The Chennai bench of NCLAT had issued a status quo order on September 6, following an appeal challenging the National Company Law Tribunal’s (NCLT) approval of a Rs 3,335 crore resolution plan, according to a report by the Economic Times.
This plan, put forth by the consortium of Dickey Alternative Investment Trust and Adani's power arm, sought to revive Coastal Energen which is a power plant operator based in Tuticorin.
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After the NCLT's approval last month, the consortium had put the resolution plan into action and taken control of Coastal Energen. According to the plan, secured lenders were set to receive about Rs 3,330 crore, which represents around 28 per cent of the admitted claims totaling roughly Rs 11,677 crore.
When is the next hearing set?
As for now, the NCLAT has scheduled the next hearing for September 18. The appeal challenging the NCLT's approval was filed by Ahmed Buhari, the former director of Coastal Energen. Buhari claimed that there were procedural errors in choosing the consortium as the successful bidder under the insolvency and bankruptcy process.
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In February 2022, Coastal Energen was admitted to CIRP by the NCLT after a case was filed by the State Bank of India.
At 12:50 pm, the shares of Adani Power Ltd. were trading at Rs 634.85, down by 0.35 per cent on the National Stock Exchange.
