Resurgent Power Ventures Private Limited has completed the acquisition of South East Uttar Pradesh Power Transmission Company Limited (SEUPPTCL), pursuant to the letter of intent (LOI) issued by the resolution professional of SEUPPTCL, and approval of the resolution plan by National Company Law Tribunal, Allahabad (NCLT).
Resurgent Power has settled the debt of all existing creditors as per the terms of the resolution plan. The transaction was part of a stressed asset resolution process run by Power Finance Corporation Limited (PFC) under the supervision of its Committee of Creditors through a competitive bidding process under the Insolvency and Bankruptcy Code, 2016. PFC was the lead financial institution for the project, with REC Limited and Bank of India as co-lenders in the consortium. The transaction entailed payment for one-time settlement of outstanding debt and purchase of equity shares for a total consideration of Rs 32.51 billion and payout of existing cash balance of SEUPPTCL as outlined in the resolution plan. In addition, Resurgent Power will invest equity and raise debt in SEUPPTCL for completion of Group 2. Group 2 consist of transmission lines of length of about 900 kms (765 kV and 400 kV), and three substations (400 kV). This group is under construction. When completed, the total enterprise value will be about Rs 65 billion. The transaction has been funded through a mix of shareholder funds brought in by Resurgent Power and loans drawn down from State Bank of India. SEUPPTCL was incorporated as a special purpose vehicle formed by Uttar Pradesh Power Transmission Company Limited (UPPTCL) on September 11, 2009 to implement and operate the specified intra-state transmission system for a period of 35 years under public private partnership model on build-own-operate-maintain and transfer basis. Pursuant to implementation of the resolution plan, SEUPPTCL has become a wholly owned subsidiary of Resurgent Power. SEUPPTCL has around 1,500 km of transmission line (765 kV and 400 kV) and five substations (765 kV and 400 kV) in Uttar Pradesh.