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NCLT admits SBI's insolvency application against Coastal Energen

BusinessLine  

The National Company Law Tribunal, Chennai has admitted the application filed by State Bank of India (financial creditor) against Coastal Energen - the power generating flagship company of the Dubai-based Coal and Oil Group - to initiate Corporate Insolvency Resolution Process (CIRP) against the company. The company has defaulted an amount of INR 1,458 crore to SBI. The counsel for the bank submitted that the company had availed financial facilities from a consortium of 15 banks and financial institutions - including the SBI and its subsidiaries - for setting up of a coal-based thermal power plant with 1200 MW capacity at Tuticorin in Tamil Nadu. The original cost of the project was estimated to be INR 4,297 crore (with debt of INR 3,323 crore and equity of INR 859 crore). However, due to over-run, the project cost was revised to INR 7,870 crore (with debt of INR 6,296 crore and equity of INR 1,574 crore).