GVK in talks with Deutsche Bank to swap PunjabPower Plants
: GVK Group is in discussion with Deutsche Bank to transfer the loans extended by senior lenders for its 540 MW coal-fired power project in Punjab, a source close to the development said on Wednesday.
GVK Power (Goindwal Sahib) Ltd (GPGSL) was unable to run the plant at optimal capacity during financial year 2017-18 and 2018-19 primarily on account of low availability of fuel and hence defaulted on repayment of dues to lenders.
Consequently the lenders have classified the loan balances of GPGSL as non-performing assets.
However, the company was able to secure coal supply for the plant under centres Shakti scheme and plant generated over 800 million units last year.
If it is through, then Deutsche Bank will be replacing the senior lenders (of GPGSL). It is called onetime settlement. There will not any change in the equity proportion of the company.
"The company will service the Deutsche Bank loan that was paid to clear the debts of senior lenders, the source said adding ..