NCLT approves Vedanta’s resolution plan for Meenakshi Energy

The Hyderabad bench of National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Vedanta Limited for Meenakshi Energy Limited.

According to this plan, creditors of Meenakshi Energy will be paid a sum of Rs 14,400 million. The company has outstanding debts totaling more than Rs 46,250 million, equating to a 31 per cent recovery. Out of the total debt, Rs 39,450 million pertains to financial liabilities. Of the total consideration, around Rs 3.12 billion is to be paid upfront, while the balance Rs 11.28 billion will be in the form of secured, unlisted non-convertible debentures issued by Meenakshi Energy, which will mature in equal instalments over the next five years. Notably, Meenakshi Energy owns a 1,000 MW coal power plant in Andhra Pradesh’s Nellore district.