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Prudent ARC buys more of KSK Mahanadi Power’s debt for Rs.125-Cr: report

Economic Times  

Prudent ARC has acquired INR 156 crore debt of KSK Mahanadi Power from Punjab & Sind Bank (PSB) in an unchallenged Swiss auction for INR 125 crore in cash. This equated to an 80% recovery for the lender.The company has three 600 MW operating units at Chhattisgarh and three other 600 MW units are under construction. Prudent ARC already has INR 914 crore admitted claims in KSK Mahanadi Power following acquisition of debt from banks and other ARCs.Six asset reconstruction companies, including Aditya Birla and Kotak Mahindra-backed ARCs, have accumulated 55% of KSK Mahanadi Power's INR 29,330-crore debt from lenders in separate transactions. Among ARCs, Aditya Birla ARC has the largest share of 33.38% in claims from KSK Mahanadi Power, followed by ASREC (India) Ltd which has 11.98% debt share and Prudent Arc with 3.82% debt following the latest deal. Kotak Mahindra Bank Phoenix ARC has 2.92% while Rare ARC and Asset Reconstruction Company of India (Arcil) have 2.10% and 0.98%, respectively.