Lenders scout for new owner for JP Group arm Prayagraj Power
A State Bank-led consortium of lenders has invited bids to sell majority stake in debt- ridden Prayagraj Power Generation Company (PPGCL), an arm of Jaiprakash Power Ventures.
The company owes over Rs 11,000 crore to 17 lenders led by SBI, PNB, BoI, IOB, IDBI Bank, Indian Bank, LIC, and L&T Infrastructure Finance among others apart an external commercial borrowing of USD 115 million from IIFCL of Britain.
The lenders have appointed SBI Caps to select an investor/s or buyer and subsequent change in the ownership of
the company.
The company is not part of the NCLT accounts, but the holding company Jaiprakash Associates is part of the 28 large accounts mentioned in the second RBI list. The lenders are in the process of finding a resolution to this account outside National Company Law Tribunal.
"Transaction entails induction of a strategic or financial investor or bidder in PPGCL to take over majority shareholding, held by the security trustee on behalf of the ...