Statkraft, Europe’s largest renewable energy company, has submitted a resolution plan for Lanco Mandakini Hydro Energy Private Limited which is undergoing bankruptcy proceedings at the National Company Law Tribunal (NCLT).
This is Statkraft’s second offer to the creditors of the Lanco unit. Its first offer was rejected because it was conditional and was found to be too low. The Lanco unit owns an unfinished hydropower plant near Kedarnath, Uttarakhand. The plant was partially destroyed by flash floods in 2013. The unit subsequently defaulted on bank loans. Reportedly, an Axis Bank-led group of creditors is trying to recover loans of Rs 13 billion that they had disbursed to Lanco Mandakini Hydro Energy. They have unanimously approved Statkraft’s debt resolution plan.