Power producer KSK Energy Ventures Ltd has been admitted into bankruptcy on a plea by non-bank lender IFCI Ltd.
IFCI filed a petition before the National Company Law Tribunal’s Hyderabad bench after KSK Energy failed to repay Rs 51.88 crore. The NCLT admitted the petition on Wednesday, KSK Energy said in a stock-exchange filing on Friday.
With the company entering the insolvency resolution process, the powers of the board of directors have been suspended and vest in the insolvency resolution professional, the NCLT said in its order.
The tribunal has appointed KS Ramesh as the interim resolution professional.
As per the order, IFCI classified KSK Energy as a non-performing asset on March 3, 2018.
KSK Energy has been going through tough times for the past few years. The company’s consolidated revenue from operations plunged to Rs 207.4 crore for the year through March 2019 from Rs 3,149 crore the year before, according to its annual report. Consolidated net loss was Rs 381.5 crore compared with Rs 1,712.5 crore.
At least three power projects under KSK Energy—Sai Lilagar Power Generation Ltd, Sai Wardha Power Generation Ltd, Sai Regency Power Corporation Pvt Ltd—are also undergoing insolvency proceedings under the Insolvency and Bankruptcy Code. Sai Lilagar owns a power plant with a capacity of 86 megawatt while Sai Regency has a 58 MW project.
Besides, a consortium of lenders had invoked pledged shares and triggered a change in management in KSK Mahanadi Power Company Ltd and Sai Wardha Power. The lenders had also triggered management change in VS Lignite Power Pvt. Ltd. As a result, these three companies are no longer part of KSK Energy.