JSW Energy exits Ind-Barath deal

Mumbai: The creditors’ committee of Ind-Barath Energy on Tuesday terminated JSW Energy’s Rs 1,000-crore offer for the bankrupt company. Their action follows JSW Energy’s deal termination notice to Ind-Barath’s resolution professional, citing ‘material adverse change’ (MAC) event.
This is the second M&A that JSW Energy has terminated since the Covid outbreak. In July 2020, JSW Energy had terminated its Rs 5,321-crore deal to acquire GMR’s Odisha thermal power plant.In October 2019, JSW Energy submitted a resolution plan for Ind-Barath, which owns a 700MW under-construction thermal power unit in Odisha. In 11 days, JSW Energy was informed that its plan was accepted by Ind-Barath’s creditors and the resolution professional subsequently filed an application with the company law tribunal seeking its nod.
On Tuesday, JSW Energy in a regulatory filing, said in the intervening period of more than 15 months since the submission of its offer, an MAC event has occurred, which allows the company to terminate its offer. Accordingly, JSW Energy served a deal termination notice to Ind-Barath’s resolution professional.