MUMBAI: The Ruias-promoted Essar Power Gujarat has sought to enter into a one-time settlement with financial creditors. The company, which had availed credit from an SBI-led consortium, was classified as a non-performing asset (NPA) after its inability to service debt.
On Monday, SBI Capital Markets, which has been appointed as the process adviser by lenders, invited bids from interested parties to better the one-time settlement offer made by the promoters of the power company. The ‘Swiss challenge’ is a method of price discovery followed by lenders to ensure that they get the best price. If any party offers a higher amount, the base bidder (Ruias) has the right of first refusal tomatch the offer. If the promoters do not match the highest offer, the loans are sold to the highest bidder.
The one-time settlement is part of the group’s comeback plan. Ruias lost their flagship Essar Steel under the bankruptcy process.
