has sold the non-performing loan account of KSK Mahanadi Power Company to for Rs 1,622 crore, accepting a haircut of almost 58 per cent against the total outstanding.

KSK Mahanadi Power Company had total loan outstanding of Rs 3,815.04 crore towards State Bank of India (SBI) as of April 2022.

initiated open offer e-auction towards sale of fund based exposure of KSK Mahanadi Power Co. Ltd on 100 per cent cash basis on April 20, 2022 for a reserve price of Rs 1,544.08 crore,” said in a regualtory filing on Thursday.

The state-owned lender had received a total of 15 expression of interests (EoIs), while only one bid was received from for an amount of Rs 1,544.08 crore in an auction in end-May.

In a Swiss challenge auction process in June, the lender said it received no competing bids and based on subsequent discussions, improved the offer to Rs 1,622 crore.

SBI said the sale concluded on August 12, 2022 after getting approval from competent internal authorities.

Prior to this, the lender had put the e-auction of KSK Mahanadi on hold in December 2021 citing administrative reasons.

At that time, the total outstanding against the company stood over Rs 4,100 crore.

Established in June 2009, KSK Mahanadi Power was undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 for more than two years.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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