IDBI drags GVK power arm to NCLT; company seeks settlement

Adding one more power asset to the pile of insolvency cases, IDBI Bank Limited has taken GVK Power (Goindwal Sahib) Limited to the National Company Law Tribunal (NCLT) seeking insolvency resolution under section 7 of the Insolvency and Bankruptcy Code, 2016.

GVK Goindwal Sahib, which owns a 540-Mw coal-fired power plant in Punjab, is GVK Group's first subsidiary to be taken to NCLT for failing to repay loans. A consortium of 13 lenders headed by IDBI Bank Ltd had provided Rs 450 billion debt to the GVK subsidiary. Of this, IDBI's share was Rs 7.34 billion.

The Hyderabad bench of NCLT has posted the matter to October 23, when IDBI's application for admission of GVK Goindwal Sahib (GVKPGSL) under IBC came up for hearing. The bench has issued notices to the parties concerned.