By
Sangita Mehta
, ET Bureau|
Jul 24, 2018, 09.11 AM IST
MUMBAI: Lenders have taken a significant step in resolving debts of about a dozen distressed power companies, with at least four to be taken to bankruptcy court and the rest to be put up for sale, said two people with knowledge of the matter. In the latter case, banks will insist on at least half the loan value being paid in cash by the prospective owners, they said.
At a meeting helmed by top State Bank of IndiaNSE 1.87 % (SBI) executives on Monday, it was decided that for the non-bankruptcy cases, existing promoters have to cut their stakes to less than a quarter so that they do not have any veto power.
GMR Chhattisgarh, Ind-Barath Energy (Utkal), Lanco Anpara and Jindal India Thermal Power are among the projects that will be referred to bankruptcy court while KSK Mahanadi, Jhabua Power and RKM Powergen will be restructured by banks, said the people cited above. The companies couldn’t immediately be reached for comment