Deutsche Bank consortium puts Jindal Thermal deal on hold
MUMBAI: A Deutsche Bank-led consortium that had won a bid to buy out the debt of Jindal India Thermal Power Ltd (JITPL) has placed the acquisition on hold. This joins a growing list of stressed asset acquisitions that have been scuttled after the covid-19 pandemic broke out in India and a lockdown was imposed.
The consortium had been the sole bidder for the asset, and thus a resolution may be a long time in coming, according to two people aware of the development.
JITPL is a 1,200 megawatt coal-fired power plant in Odisha’s Angul district, owned by the BC Jindal Group company. It owes nearly ₹7,600 crore to a clutch of 17 lenders, led by Punjab National Bank. The lenders hold 51% in the unlisted JITPL after shares pledged by the promoter company were invoked because of difficulties in repaying bank loans. Since 2017, lenders have sought bids to sell their 51% stake.
