IL&FS, as part of its resolution process, had recently invited expressions of interest (EoIs) to acquire a 92% stake in ITPCL held by IL&FS Energy Development Company (80%) and the group holding company (12%). This asset has two coal-based power plants with 1,200 MW capacity in Cuddalore with the potential to add nearly 2,000 MW more, a captive jetty adjacent to the plant, and a captive coal mine in Indonesia.
The promoters, who operate the Hyatt Regency hotel near Mumbai airport, offered to pay the entire claims of lenders, trade creditors, employees and government dues, but the plan was rejected by the largest lender - UV Asset Reconstruction Company (ARC).
IBC: The decision came as NCLAT set aside an order from the Mumbai bench of the National Company Law Tribunal (NCLT) that invoked Section 29A of the Insolvency and Bankruptcy Code to restrict such individuals from submitting a resolution plan.