Debt of RattanIndia Power acquired by Goldman Sachs, Varde Partners

In one of the biggest debt resolution deals outside the Insolvency and Bankruptcy Code, RattanIndia Power Ltd has done an agreement with its consortium of lenders led by PFC and SBI under which the existing principal debt of ₹6,574 crore will be taken over by new investors, including Goldman Sachs and Varde Partners, for ₹4,050 crore.

This is the first successful scheme to have been closed under the RBI’s Prudential Framework for resolution of stressed assets issue in June this year and the largest in terms of size outside the NCLT framework without any change in the existing management.

The debt resolution comes in the backdrop of significant sectoral challenges that the Indian power sector has been undergoing in terms of dealing with stressed and non-performing assets.