Adani and Torrent Group have submitted expressions of interest (EoIs) to buy South East UP Power Transmission Company after its owner, Isolux Corsan, filed for bankruptcy in Spain and informed Indian lenders of its inability to continue to finance the local affiliate, according to sources.
The enterprise value of the local affiliate’s business is pegged at around Rs 6,000 crore, they said. Isolux Corsan had won a 35-year concession to build 1,600 km of power transmission network in Uttar Pradesh in 2011. It had borrowed Rs 4,500 crore from local lenders to fund the construction.
Unable to service the loans after it filed for bankruptcy, the Spanish company is said to have requested the Indian lenders to take necessary steps towards recovery. Bidding is expected to intensify as Anil Agarwal’s Sterlite Power, Hyderabad’s Megha Engineering and sovereign wealth funds are expected to join the process after they sounded out lenders about their intent. The EoI deadline has been extended by one month to accommodate the late bidders, according to people in the know.
The earlier deadline was March 5. South East UP Power Transmission Company was admitted for Insolvency and Bankruptcy Code (IBC) proceedings by the National Company Law Tribunal (NCLT) on July 16 on the request of its largest creditors, Power Finance Corporation and Axis Bank.