As Goyal Gases Falters On Payments, Creditors May Explore Fresh Bids For Sale Of Jhabua Power Plant 

After the proposed plan of selling Jhabua Power Ltd to Goyal MG Gases Pvt. appears to be faltering, the lenders to the company are exploring options to invite fresh bids to recover their dues, Livemint has reported.

“There has been very little progress in the transaction in the last two months, but lenders are expected to meet representatives of Goyal Gases on 29 November again to see if there is a possibility of closing the deal,” said a source to Mint. The Joint Lenders Forum (JLF) led by Axis Bank, has asked Goyal Gases to make the final payment of Rs 2,350 crore before 30 November. Failing this, the forum may conduct a fresh round of bidding.

In August, Goyal surprised rivals like Adani Power, Tata Power-backed Resurgent Power Ventures Pvt Ltd, and emerged as the highest bidder for the Jhabua Power Ltd. The latter was put on sale by the lenders who control over 61 per cent of the pledged shares of the company.

Jhabua’s power plant is one of the four stressed assets in the power sector for which the lenders are hurrying to close deals by December, before the Supreme Court resumes hearing their cases from Wednesday (29 November 2018).

Also Read: India To Be Power Surplus By 2018-19 After Two Years Of Deficit