"Coastal Energen's Current Stakeholders Propose ₹5,847 Crore Settlement in Landmark Deal"

In a significant turn of events in the ongoing Corporate Insolvency Resolution Process (CIRP) for Coastal Energen Pvt Ltd, Mutiara & Precious Energy Holdings, the existing promoters of the beleaguered power company, have put forth a substantial settlement offer totaling ₹5,847 crore. This proposal includes a 15 percent equity component, marking a crucial development in the resolution process. Simultaneously, it has been revealed that Adani Power has emerged as the leading contender to acquire the troubled power company.

A statement from Coastal Energen noted that a portion of the total settlement, amounting to ₹2,327 crore, has already been reached with the State Bank of India (SBI) Consortium, underscoring their commitment to resolving the financial issues surrounding the company.

This settlement offer represents a notable 82 percent recovery for the banks involved, equivalent to ₹4.87 crore per megawatt (MW). In contrast, Dickey-Adani Power had previously offered ₹3,440 crore, translating to ₹2.87 crore per MW, highlighting the more favorable terms provided by the existing promoters.

Notably, the settlement proposal by Coastal Energen's current promoters is one of the highest in the country within the power sector. Comparatively, Meenakshi Energy concluded its settlement at ₹1.44 crore per MW, Jindal India at ₹2.03 crore per MW, and Essar at ₹1.33 crore per MW, further emphasizing the attractiveness of the offer put forward by Mutiara & Precious Energy Holdings.

HBL