Jindal India Thermal Power’s 17-member lenders’ consortium has rejected the promoters debt resolution offer that proposes to pay Rs 2,450 crore ($325 million at current exchange rate) against a total of Rs 7,000 crore ($928 million), people aware of the matter told The Economic Times.
Opposing lenders — mainly private-sector banks — want the promoters to increase their offer to match existing thermal company valuations of around Rs 3 crore per megawatt. The current offer values the company at Rs 2 crore per megawatt, an executive familiar with the discussions said.
The lenders’ consortium is led by the Punjab National Bank (PNB).
The promoters had made the offer in November last year after bankers failed to find a buyer. Then in December the bankers used the promoters’ offer as the baseline for inviting bids from third parties but no one participated.
Jindal India Thermal Power is promoted by Shyam Sunder Jindal, son of BC Jindal and a cousin of Sajjan and Naveen Jindal.
The firm has a 1,200 megawatt thermal power plant in Odisha. The company came into financial distress due to shortage of coal.
